(Yicai) Sept. 5 -- China Vanke said the real estate giant received a CNY11.5 billion (USD1.6 billion) loan from a syndicated led by Ping An Bank and Bank of Communications.

Vanke applied for bank loans to meet operational needs, the Shenzhen-based developer announced yesterday. Some of its subsidiaries will provide pledges, mortgages, and guarantees to secure the financing, while others will act as co-borrowers and share repayment obligations with the parent firm, it added.

Vanke secured a loan with a principal of CNY3.5 billion (USD490 million) from the Shenzhen branch of Ping An Bank with a term of three years and another with a principal of CNY8 billion from the same city branch of Bank of Communications with a term of five years, it noted.

The total external guarantees of Vanke will reach CNY101.2 billion (USD14.3 billion) after the latest is completed, accounting for just over 40 percent of its audited net assets as of the end of last year.

Vanke's net loss was CNY9.9 billion in the six months ended June, according to its latest earnings report. Its revenue tumbled 29 percent to CNY142.8 billion in the period from a year earlier.

Vanke's shares [SHE: 000002] closed 2.1 percent higher at CNY6.59 (93 US cents) apiece today, after rising by as much as 3.1 percent at one point. The benchmark Shenzhen Component Index climbed 0.3 percent.

Editor: Martin Kadiev