China Vanke Co. Ltd. said its subsidiary based in Hefei, China, provided an up to 480 million yuan loan guarantee to affiliated company Hefei Xinhui Haochen Real Estate Co.
Hefei Xinhui agreed to borrow no more than 1.2 billion yuan from Everbright Trust for the development of the Central Park residential project in Hefei city, Anhui Province. Vanke's Hefei unit, which owns a 40% stake in Hefei Xinhui, pledged to guarantee the latter's loan.
Based on the 40% share holding that it made the pledge with, the amount guaranteed by Vanke will amount to a maximum of 480 million yuan.
As of Dec. 15, US$1 was equivalent to 6.61 yuan.