(Yicai Global) Sept. 23 -- China Vanke, the country's biggest property developer by market capitalization, plans to issue bonds worth up to CNY2.5 billion (USD351 million) to fund seven rental housing projects.

The five-year notes carry a coupon of between 2.9 percent and 3.9 percent, the Shenzhen-based company said in a statement yesterday. CNY1.75 billion of the funds raised will go to build and run the projects, while the rest will be used to replenish working capital after issuance fees are deducted.

The projects include heavy-asset and rental housing schemes developed on collectively owned land in the cities of Beijing, Shanghai, Dalian, Dongguan and Shenyang.

The government specified that only Vanke can own or rent the heavy-asset projects, and for a term not less than the duration of the bond. The rental properties can only be let and Vanke cannot sell them.