(Bloomberg) -- One of China’s most-watched developers has told some investors that it readied cash for an upcoming yuan bond payment, a move that may boost a firm that’s faced concern about its liquidity amid a broader property debt crisis.

State-backed builder China Vanke Co. told some investors recently that it has readied cash to repay its 1.45 billion yuan ($201 million) note due May 25, according to people familiar with the matter. 

The security is indicated at 97.6 yuan, suggesting investors’ high conviction that the issuer will be able to repay the debt at maturity, according to Bloomberg-compiled data.

The state-backed developer has become the latest flashpoint in the nation’s property crisis, and sought to assuage concern about its ability to stave off default after a market selloff in recent months. The company will exit non-core operations and divest assets as the developer seeks to boost liquidity amid the sector’s unprecedented downturn, according to a memo from a shareholder meeting in April.

Vanke has another offshore bond due this year, a $600 million bond that will mature on June 7, according to Bloomberg-compiled data. The bond is traded at 96.9 cents on the dollar, Bloomberg-compiled data shows. 

But the company’s longer-duration dollar bonds maturing in 2028 and 2029 are still traded below 60 cents on the dollar, a territory usually considered distressed.

--With assistance from Wei Zhou and Emma Dong.

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