Banks Balk at China Vanke Loan Terms in Hurdle for State Support
- Bank of China has approved own commitment to syndicated deal
- ICBC, China Constrution Bank seek collateral for borrowing
China Vanke Co.'s Qibao Vanke Plaza in Shanghai.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
China Vanke Co. is facing resistance from the nation’s two largest banks on a new HK$4.5 billion ($575 million) offshore loan, according to people familiar with the matter, in a major test of state support for the cash-strapped real-estate giant.
Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. had yet to sign off on the syndicated loan as of last week even as smaller rival Bank of China Ltd. has internally approved its own HK$1.5 billion portion, said the people, asking not to be identified discussing a private matter.