Source: e-company
Author: Zhang Yifan
In recent years, the real estate industry has secured the largest single loan amount.
On May 23, the reporter learned that Vanke has signed an agreement with China Merchants Bank and other leading financial institutions to obtain 20 billion yuan syndicated loans. The collateral is Vanke's Wanwei Logistics shares, which have received 10 billion yuan so far. This is the largest single real estate loan since 2020.
Vanke responded that this 20 billion syndicated loan will help the company further enhance its liquidity, reflecting the strong support of financial institutions such as China Merchants Bank for the company. The company has always maintained a good cooperative and trusting relationship with financial institutions, and all kinds of financing cooperation are being actively promoted. In the next step, the company will continue to act firmly, and has the confidence and ability to proactively and comprehensively complete the transformation of the financing model while properly handling maturing debts.
Industry insiders pointed out that due to the large amount of money and the joint approval of multiple banks, the requirements for borrowers' qualifications are very high. Furthermore, the current real estate policy has shown significant benefits, and Vanke has received significant financing progress, which is also significant in boosting industry confidence.
It is worth noting that this syndicated loan may have a demonstration effect, driving Vanke's other financing to be implemented at an accelerated pace. Last week, there was news that Vanke reached a preliminary agreement on collateral for syndicated loans led by major state-owned banks. It is estimated that the loan withdrawal amount will not exceed 50 billion yuan. Vanke did not comment on this matter at the time. The syndicate banks that have landed today are mainly joint stock banks, and there may still be syndicated loans that will land one after another in the future.
Vanke recently announced the implementation of intensive financing actions: on May 13, Vanke A announced that it applied for loans totaling 7.339 billion yuan from the Bank of China, Agricultural Bank, and Bank of Beijing; on May 20, Vanke also received another 1.2 billion yuan loan from the Bank of China; on May 16, Vanke also successfully issued a CMBS (Commercial Real Estate Mortgage Support Securities) worth 1,435 billion yuan on the Shenzhen Stock Exchange, further reducing overall financing costs.
Earlier, at the shareholders' meeting held on April 30, Yu Liang, chairman of Vanke's board of directors, said that Vanke has formulated a “package plan” to achieve “three goals”, namely “reducing debt,” “transforming the financing model,” and “focusing on the main business”:
“Debt reduction” will reduce interest-paying debt by more than 100 billion yuan in the next two years, and the total amount of interest-paying debt will be reduced by more than half in the next five years;
“Financing model transformation” gradually shifts from a model based on total loan repayment and entity credit to a financing model focusing on project and asset credit;
“Focus on the main business”, free up limited resources, and do a good job in strengthening the three major businesses of integrated residential development, property services, and rental apartments.
In the secondary market, Vanke's recent stock and bond market trends are bright. Vanke A has been rising continuously for many days recently. Up to now, the market value has returned to 100 billion dollars; the price of Vanke's domestic bonds has also generally risen recently. Among them, a dollar bond due in 2027 once recorded the biggest increase since November last year.
Editor/Jeffy