Vanke may increase 5-year loan by $200m

Property developer China Vanke (000002.SZ) is planning to increase a US$300 million five-year loan by up to US$200 million, Bloomberg reported, citing sources familiar with the situation. The loan, organized by Bank of China (601988.SH, 3988.HK), will be used for working capital and debt refinancing, and the sources said it would pay about 285 basis points above the London interbank rate. Bloomberg calculated that Vanke has US$864 million in debt maturing in 2013. While the company’s shares closed up at the end of last week on expectations of higher first-quarter revenue, concerns remain over the potential impact of growing asset bubbles in the mainland property market.