Country Garden, whose more than doubled stand up year, will produce interest of 1.4 share points more than the U.S. Income loan.

March 28 (Bloomberg) -- Country Garden Holdings Co. hired Bank of China Ltd. to set a loan, after higher borrowing costs laboured the Chinese developer to redeem an abroad rein selling final year, two family with direct adeptness of the deal said. Country Garden, based in Foshan, Guangdong, plans to uplift $200 million from a three-year accommodation that can be tired in the U.S. and Hong Kong currencies, said the people, who declined to be identified because the intelligence isn't public.

The developer sold its victory convertible accountability in month after scrapping a $1 billion relationship present in November. The allowance will add to the 4.3 billion yuan ($614 million) it raised in February from the purchasing of convertible bonds to allot in projects and refinance debt. House prices in 70 Chinese cities increased 10.9 percent in February from a year earlier, compared with 11.3 percent in January, after the supervision introduced lending curbs to unabashed the market. ''The markets don't look out on very easy about Chinese valid estate developers, but things are indubitably a lot better for the big players, which can still have access to capital,'' said Hong Kong-based Arthur Lau of JF Asset Management Ltd., which manages $128 billion of assets. Country Garden, whose more than doubled termination year, will requite regard of 1.4 interest points more than the U.S. or Hong Kong dollar interbank rates for the loan, said the people.

Johnson Murr, Country Garden's spokesman, declined to comment. Standard & Poor's ranks Country Garden's obligation BBB-, the lowest investment grade. Moody's Investors Service rates it one footfall lessen at Ba1. Higher Interest Country Garden is paying more than four times the prevail upon limit than similarly rated competitors in China because of the universal tribute crunch. China Overseas Land & Investment Ltd., a builder controlled by the country's construction ministry, took a five-year HK$3.5 billion ($450 million) credit in August, paying engagement 0.32 cut time more than the Hong Kong interbank offered rate, details compiled by Bloomberg show.

The Hong Kong-listed company's encumbrance is also rated BBB- by S&P. Country Garden's five-year convertible bonds commerce at 100.75 percent of the repute value, unchanged from yesterday and up from 98.5 percent after week, according to Lehman Brother Holdings Inc. Investors are tough higher yields to obtain the bonds of several Chinese trait developers than their troubled U.S. peers, due to appertain to that developers in China are battling rising borrowing costs and falling prices in coastal cities. U.S. Builders High-yield, high-risk bonds issued by U.S. lodging builders, hit by the ruin of the subprime mortgage market, interchange at an so so 11.06 piece points more than Treasuries, according to a Merrill Lynch & Co. catalogue that tracks 85 securities.

Investors exact an particularly yield, or spread, of 17.67 proportion points to hold Hopson Development Holdings Ltd.'s $350 million 8.125 percent bonds maturing in 2012 rather than Treasuries, according to ING Groep NV's prices. The dissemination on Greentown China Holdings Ltd.'s $400 million securities due in 2013 has widened to 17.67 part points, from 7.59 portion points at the beginning of the year. Country Garden reported a of 4.14 billion yuan in 2007, up from 1.52 billion yuan the too soon year, as the undistinguished selling worth of its apartments jumped 20 percent to 6,359 yuan per right-angled meter, according to its revenue report.

Its have fallen 25 percent this year compared with the 17 percent settle in the benchmark Hang Seng Index. To ring the anchorman for this story: in Hong Kong at.

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