China Vanke seeks one-year extension on second onshore bond, sources say

China Vanke is seeking to extend repayment for a second onshore bond by one year, two sources familiar with the matter said on Friday, as the cash-strapped developer struggles amid a prolonged property slump.

The proposed extension is for a 3.7 billion yuan ($525 million) note due December 28, the sources said, adding that the interest rate would be unchanged at 3% during the extension.

Bondholders may submit additional proposals before a vote, said the sources, who declined to be identified as the matter was not publicly disclosed. A meeting is scheduled for December 22.


Vanke, once China's largest homebuilder by sales and a bellwether for the sector, did not immediately respond to request for comment. Bloomberg earlier reported details of the plan.

The developer faces a crucial test this week as creditors vote on its first proposal to delay repayment of a 2 billion yuan onshore bond that is due next week. It has also requested a one-year extension for that bond.

A bondholder meeting began Wednesday and voting is expected to conclude by midnight Friday.

($1 = 7.0552 yuan).