China Vanke is said to be in talks with its creditor banks for swapping of its local debt in order to avoid a default, according to sources. Vanke’s creditors are considering swapping their bond holdings into secured debt, which would give them collateral to protect against potential losses, the sources added. Yesterday, it was reported that
Vanke is also considering an offshore loan of HK$4.5bn ($575mn), to avert the liquidity crisis.
Vanke’s longer dated debt continue to trade at distressed levels of 45-49 cents on the dollar, however its notes maturing in
June 2024, traded at ~94.5 cents on the dollar.