Vanke has borrowed money from its major shareholder, Shenzhen Metro Group, once again. It has borrowed over 20 billion yuan this year.

On July 3rd, Vanke announced that it "applied to Shenzhen Metro Group for a loan of no more than 6.249 billion yuan". The loan term is no more than 3 years, and the loan interest rate is 2.34%, which is 66 basis points lower than the 1-year Loan Prime Rate (LPR).

This loan was made just one week after Vanke held its 2024 annual general meeting. It is also the largest loan Vanke has applied for this year. The purpose of the loan is to repay the principal and interest of the bonds issued by the company in the public market.

In the loan agreement, the two parties agreed that "with the consensus of both parties, early repayment can be made; with the consent of the lender, the loan can be extended."

Previously, the 890 million yuan loan (with a 60-day term) that Vanke borrowed from Shenzhen Metro Group on March 20th has recently been successfully negotiated for an extension. The original loan was due on May 18th, 2025. After the extension, it will be due on December 31st, 2025. The 2-month loan has been directly extended to a 9-month term.

Since the beginning of this year, Vanke has borrowed from its major shareholder, Shenzhen Metro Group, 6 times, with a total amount of 21.101 billion yuan.

In addition, Shenzhen Metro Group has also acquired 49% of the investment income rights of the Mangrove Bay property development project held by Vanke, the future income rights of relevant ancillary rights and interests, as well as 49% of the equity of Shenzhen Metro Vanke Investment & Development Co., Ltd. By transferring project equity to its major shareholder, Vanke has achieved a capital return of over 1.35 billion yuan.

At the general meeting one week ago, Xin Jie, the chairman of Vanke and Shenzhen Metro Group, said that Vanke is full of confidence in the future.

Han Huihua, the financial director of Vanke Group, introduced that from January to May this year, with the support of financial institutions, major shareholders and its own efforts, Vanke has newly raised and refinanced 34.1 billion yuan, and the financing cost has remained at a low level. At present, it has successfully repaid 16.5 billion yuan of public debts, and there will be no overseas public debts due this year.

Replacing public debts with loans from the major shareholder has become the key for Vanke to overcome the current crisis.