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Aoyuan Issues US$225 million 7.95% 4-year Senior Notes at Par Receives Overwhelming Response with More Than 8 Times Oversubscription Further Extends Debt Maturity Profile

(11 February, 2019 – Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”; Stock Code: 3883) is pleased to announce that the Company has successfully issued US$225 million 7.95% senior notes at par due 2023.


The estimated net proceeds of the new notes (after deducting the underwriting commission and other estimated expense payable in connection with this offering) will amount to approximately US$221 million. The Company intends to use the proceeds mainly to refinance existing offshore indebtedness and for general working capital. The joint lead managers and the joint bookrunners of the new notes are (in alphabetical order) AMTD, Bank of America Merrill Lynch, Bank of East Asia, DBS Bank, Deutsche Bank, Goldman Sachs (Asia), J.P. Morgan, Morgan Stanley and UBS.


Aoyuan management commented, “In January 2019, Aoyuan opened the Asia USD bond market and subsequently launched the first fully marketed 3-year PRC property high yield issuance since Q4 2018 by successfully completing an add-on issuance of US$275 million senior notes at par due 2021 and issuance of US$500 million senior notes at par due 2022. The new notes issuance has once again been well received by domestic and international institutional investors with order book of approximately US$2.1 billion and more than 8 times oversubscription, reaffirming the capital markets’ confidence and recognition in Aoyuan’s comprehensive strength. As of now, Aoyuan has fully utilized its newly obtained foreign debt quota of US$1 billion from the National Development and Reform Commission (“NDRC”). The fund raised is mainly used for refinancing its existing offshore indebtedness, which further extends its debt maturity profile. Aoyuan will continue to diversify its onshore and offshore financing channels, optimize its debt structure and lower its borrowing costs. Looking forward, Aoyuan will strive to achieve robust business growth, so as to deliver fruitful returns to shareholders and investors.”