China Mulls $6.8 Billion Funding to Help Vanke Repay Debt
- Special local bonds to be used to buy unsold homes from Vanke
- Vanke could issue new bonds and loans, people familiar say
Authorities are stepping in to overhaul Vanke.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese authorities are working on a proposal to help China Vanke Co. plug a funding gap of about 50 billion yuan ($6.8 billion) this year, according to people familiar with the matter, highlighting the government’s support for the distressed developer.
Under the plan, regulators would allocate 20 billion yuan of special local government bond quota for the purchase of unsold properties and vacant land from Vanke, said the people, asking not to be identified discussing private information. The money would enable the Shenzhen-based developer to pay public and private debt due this year, the people added.