(26 Jan 2017 – Hong Kong) 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 has signed a three-year US dollar/Hong Kong dollar dual currency club loan facility agreement amounting to approximately HK$1.5 billion with Bank of East Asia, Chiyu Banking Corporation, Chong Hing Bank, Hang Seng Bank, Nanyang Commercial Bank and Wing Lung Bank.

 

The loan agreement will bear interest at the rate of LIBOR/HIBOR plus 4.5% per annum. Substantially all of the proceeds will be used for refinancing the Company’s existing debts, and the remaining amount will be used for general working capital.  

 

Aoyuan management commented, “The contracted sales of Aoyuan recorded approximately RMB25.6 billion in 2016, representing a fivefold increase since 2012. Recently Fitch Ratings, an international rating agency, upgraded Aoyuan’s long-term corporate credit rating to ‘BB-’. Given its outstanding performance, Aoyuan is highly recognized by the capital markets. Earlier this month Aoyuan successfully issued US$250 million 6.35% senior notes at par and became the first Asian issuer to tap the dollar bond market in 2017. This loan facility reaffirms the banks’ confidence in Aoyuan, and it helps to further lower the borrowing cost and optimize the debt structure. Aoyuan will continue to strive for robust business growth, while maintaining its prudent financial management and diversifying its onshore and offshore financing channels, so as to deliver satisfactory returns to our shareholders and investors.”