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China Vanke’s New Bond Plan Highlights Builders’ Funding Divide

  • Developer proposes to sell as much as 8 billion yuan of bonds
  • Move shows stronger builders can still tap cheap onshore funds
Apartment blocks under construction at a China Vanke Co. residential development, in Xining, Qinghai province, China.

Apartment blocks under construction at a China Vanke Co. residential development, in Xining, Qinghai province, China.

Photographer: Qilai Shen/Bloomberg

China Vanke Co. has proposed to sell as much as 8 billion yuan ($1.18 billion) of new bonds, in the latest sign that stronger developers in the country’s crisis-ridden property industry remain able to capitalize on cheap domestic funding.    

The nation’s second-largest property firm by contracted sales plans to issue the new debt with tenors of as long as 10 years, according to a prospectus filed to the Shenzhen Stock Exchange. The proposal puts Vanke on track to surpass state-run Poly Developments and Holdings Group Co. as the top local bond issuer among developers this year.