COUNTRY Garden Holdings Co yesterday offered higher yields than rivals to attract investors to a bond sale that may raise US$1.5 billion, the most by a Chinese property company.
The nation's most profitable developer will pay as much as 9.75 percent on its 10-year bonds and nine percent on its five-year bonds, according to Bloomberg News. The Foshan, Guangdong-based company plans to raise at least US$1 billion.
Country Garden's sale has driven down prices of Chinese bonds and it will pay about a percentage point more than yields on similarly rated debt from Shimao Property Holdings Ltd. The developer, with 45 projects under way as of August, is betting urban home prices will keep rising after an 8.9 percent year-on-year gain in September.