(Yicai) April 15 -- Struggling real estate developer China Vanke has put forward a proposal to extend the payment of a CNY2 billion (USD293.3 million) note, with the same conditions as the three bonds that were approved for rollover in January.

Vanke plans to delay the repayment of interest and principal of 23 Vanke MTN001, a medium-term note with an interest rate of 3.11 percent, by one year to April 23, 2027, according to the proposal published yesterday by the bond’s trustee, Bank of Communications.

Under the proposal terms, Vanke will pay CNY100,000 (USD14,670) of principal to the account of every creditor that votes in favor, as well as 40 percent of the remaining principal and the CNY62.2 billion (USD9.1 billion) accrued interest payable, on April 23, while the remaining 60 percent will be extended for one year.

During the extension period, the coupon rate will remain at 3.11 percent, and any additional interest accrued will be repaid with the principal upon maturity.

The Shenzhen-based company will hold a creditor meeting on April 17 to discuss the proposal, which requires approval from over 90 percent of creditors.

Vanke also vowed to provide a pledge of accounts receivable from three companies it directly or indirectly holds as credit enhancement for the outstanding principal and interest of 23 Vanke MTN001. If the developer is unable to complete the procedures for credit enhancement, it will provide other assets with equivalent guarantee effectiveness as a substitute.

Vanke proposed to roll over a CNY2 billion note and a CNY3.7 billion note expiring at the end of last year in mid-December. After several rejections and modifications, the creditors unanimously approved the final extension plan on Jan. 27. They will fall due on Dec. 15 and Dec. 28, respectively.

Moreover, Vanke also delayed the repayment of another CNY1.1 billion note, H1 Vanke 02, formerly known as 21 Vanke 02. The company has already paid 40 percent of the principal and interest, with the remaining 60 percent due Jan. 21, 2027.

Editor: Futura Costaglione