(Yicai) Aug. 6 -- China Vanke said it has secured an additional CNY1.7 billion (USD233 million) low-cost loan from its largest shareholder, the eighth from Shenzhen Metro Group so far this year, to help the major property developer pay debt.

The three-year loan carries an interest rate of 2.34 percent, which is lower than China’s one-year loan prime rate of 3 percent, the Shenzhen-based builder announced yesterday. As with the previous loans, the funds will be used to pay the principal and interest on bonds Vanke sold in the open market and the interest on other debt.

Vanke secured new funding and refinancing worth CNY24.9 billion (USD3.5 billion) in the first half of the year, as well as around CNY24.4 billion from Shenzhen Metro since Feb. 10. Shenzhen Metro owns 27.2 percent of Vanke.

The interest rate on the latest shareholder loan follows market-based principles and is below the current borrowing cost from financial institutions, underscoring Shenzhen Metro’s major support, Vanke said. It does not harm the interests of Vanke or its minority investors and will not adversely affect the company’s current or future financial condition or operating results, it added.

At the end of last year, Vanke had liabilities of CNY1.1 trillion (USD153 billion), with an asset-liability ratio of 74 percent. Its interest-bearing liabilities reached CNY361.3 billion (USD50.3 billion), with 44 percent or CNY158.3 billion of the total being short-term debts due within a year.

Vanke’s shares [SHE: 000002] edged 0.2 percent lower to close at CNY6.44 (90 US cents) each in Shenzhen today. The stock is down 11 percent since the end of last year.

Editor: Futura Costaglione