(Bloomberg) -- China Vanke Co., one of the nation’s few real estate giants that’s yet to default, has gotten a fresh loan, pushing recent bank borrowings over $1 billion as it shores up its finances.

The Shenzhen-based company has obtained a 1.2 billion yuan ($166 million) loan from Bank of China’s branch in the city, according to an exchange filing on Monday. The funds will be used for a development project in Changzhou, it said. 

The latest deal brings the total of loans that Vanke and its units have taken out this month to 7.85 billion yuan ($1.08 billion), according to data compiled by Bloomberg based on public filings. 

State-backed Vanke was once China’s largest developer but has become the latest flashpoint in the nation’s prolonged property crisis, underscoring the severity of the sector’s challenges. Its latest loan, while adding to its debt, may signal that the company is seeking greater liquidity for projects while waiting for pledged government support measures to buy up homes and spur demand. 

Vanke went under close investor scrutiny earlier this year after concerns about its private debt maturities sparked a series of bond selloffs. 

The notes have since rebounded. A dollar bond maturing next year jumped to above 85 cents this week from below 65 cents at the beginning of this month. Some longer-dated notes surged to their highest in nearly six months on Monday. Their prices were steady on Tuesday. 

Investors’ outlook on China’s property sector also has recently brightened after the government laid out the latest rescue package, featuring 300 billion yuan of central bank funding to help government-backed firms buy excess inventory from developers.

Vanke could get “an outsized liquidity boost” from the government’s measure, according to a note from Bloomberg Intelligence analyst Kristy Hung Monday. The developer has 108 billion yuan worth of property held for sale, beating its peers, she wrote.

(Updates with details throughout.)

©2024 Bloomberg L.P.