China Vanke has this week entered into a loan agreement with its largest shareholder Shenzhen Metro Group, the substantial shareholder of the property, for up to Rmb2.8 billion $383 million, according to a Hong Kong Stock Exchange HKEX announcement on February 10.
Proceeds from the loan will be used to repay and settle the principal and interests accrued under various debts issued by the company in the open market, according to the announcement. The amount is only small compared to Vanke's total liabilities with billions of dollars of loans needing to repaid this year.
The move comes after the troubled Shenzhen-headquartered property giant...
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