(Hong Kong – 4 January 2017) China Aoyuan Property Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883), a renowned property developer in China, is pleased to announce that the Company successfully issued US$250 million 6.35% Senior Notes at par due 2020. 

 

The estimated net proceeds of the Notes (after deducting the underwriting commission and other expenses incurred in the Notes Issue) will amount to approximately US$244.5 million. The Company intends to use the proceeds to refinance its existing indebtedness and for general working capital purposes. AMTD Asset Management, BofA Merrill Lynch, China Merchants Securities (HK), Deutsche Bank, Guotai Junan International, Haitong International, SC Lowy and UBS are the joint lead managers and the joint bookrunners of the Notes Issue.

 

Aoyuan management commented, “The issuance of the Notes has again been well-received by the capital markets and was 8 times oversubscribed, which will help lower our borrowing costs and further optimize our debt structure. Aoyuan maintained its robust growth momentum, having achieved approximately RMB25.6 billion contracted sales throughout 2016, a fivefold increase since 2012. As a result of rapid sales growth, disciplined land acquisitions and a healthy financial profile, the credit rating outlook of Aoyuan has been upgraded to ‘Positive’ by three major international rating agencies, namely Moody’s, S&P and Fitch, during the year. Recently Fitch has further upgraded the Company’s long-term corporate credit rating to ‘BB-’, which reaffirmed the wide recognition and confidence by capital markets and the public. Aoyuan will continue to strive for rapid business expansion while maintaining its prudent financial management and diversifying its onshore and offshore funding channels, so as to deliver satisfactory returns to our shareholders and investors.”