AsianFin -- China Vanke Co., one of the nation's largest property developers, faces mounting liquidity concerns as a record $4.9 billion in bonds come due in 2025 amid a prolonged property market downturn.
The obligations, comprising yuan- and dollar-denominated bonds, represent the highest annual maturity in the company’s history and account for more than half of its outstanding public debt, according to Bloomberg data. This also marks the largest maturity load for any Chinese developer this year.
Once a key indicator of China's property market health, Vanke’s plummeting bond prices now signal growing investor unease. Its 3.5% dollar bond maturing in 2029 dropped 16.3 cents to 37.91 cents in the past month, well below the 70-cent threshold typically considered distressed.
According to Bloomberg News, Vanke assured that it would take all possible measures to meet its debt obligations in 2025. The company plans to raise funds through home sales, asset disposals, and divestment from non-core businesses.
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