Aoyuan Issues US$250 million 5.375% Senior Notes at Par Due 2022 Received Overwhelming Response from Capital Markets with 12 Times Oversubscription
Date：2017-09-06
(6 September 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 successfully issued US$250 million 5.375% Senior Notes at par due 2022.
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$245.3 million. The Company intends to use the proceeds to refinance its existing offshore indebtedness. The joint lead managers and the joint bookrunners of the Notes Issue are (in alphabetical order) ABC International, AMTD, Bank of America Merrill Lynch, China Industrial Securities International, China Merchants Securities (HK), Deutsche Bank, Guotai Junan International, Haitong International, Morgan Stanley and UBS.
Aoyuan management commented, “Aoyuan became the first Asian issuer to complete 6.35% senior notes at par earlier this year. The issuance of the Notes has once again been well received by the capital markets and was oversubscribed by 12 times. This is by far the lowest cost of US dollar-denominated senior notes issued by Aoyuan, which will help extend the Company’s debt maturity and lower its borrowing cost. Since 2016, Aoyuan has been the only PRC developer with credit rating upgrades by all three major international rating agencies, namely Fitch (BB-), Moody’s (B1), and Standard & Poor’s (B+). The Company’s onshore corporate rating has also been upgraded by United Credit Ratings (AA+). In September 2017, Aoyuan was successfully included in the List of Eligible Securities under Shenzhen-Hong Kong Stock Connect, further enhancing the liquidity and valuation of Aoyuan’s shares and expanding its shareholder base. Both Aoyuan’s bonds and shares have been actively traded, reaffirming the capital markets’ confidence and recognition in Aoyuan’s comprehensive strength. Aoyuan will continue its robust business growth while maintaining its prudent financial management and diversifying its onshore and offshore financing channels, so as to build a solid foundation for sustainable development.”