China Vanke Co. was rejected by at least two big local banks as it tried to secure a short-term loan to quell the default fears that have fueled a plunge in its bonds this week, according to people familiar with the matter.
The company held talks with banks about securing a so-called liquidity loan to help repay two bonds worth a combined 5.7 billion yuan ($805 million) due next month, said the people, asking not to be identified when discussing a private matter. The talks were held ahead of a Wednesday evening announcement that Vanke would seek bondholder approval to push back the maturity of one of the bonds.