(27 November 2012 - Hong Kong) China Aoyuan Property Group Limited ("Aoyuan" or the "Company", together with its subsidiaries the "Group"; Stock Code: 3883), one of the leading property developers in Guangdong Province in China, is pleased to the issuance of US$125 million five-year senior notes on 14 November 2012. The notes will bear interest rate of 13.875% per annum, payable semi-annually in arrears. The listing of the senior notes was effective on 26 November 2012. 

The estimated net proceeds of the notes issued, after deduction of the underwriting discount and other estimated expense payable in connection with this offering, amount to approximately US$118 million and the Company intends to use the net proceeds to primarily fund existing and new property projects and land acquisition, and to refinance the existing indebtedness and for general corporate purposes. UBS AG, Hong Kong Branch is the sole bookrunner and lead manager of the notes issue. International rating agencies Fitch and Moody"s assigned B+ and B2 corporate family rating respectively and the ratings outlook is stable.

Mr. Guo Zi Wen, Chairman of Aoyuan, said, "The proceeds from the issuance of the notes further strengthens the Group’s healthy financial position, which has already been very strong with the cash HK$3.23 billion received from the disposal of the Beijing Project and the cash and bank deposits of approximately HK$ 4.87 billion as of 30 June 2012. This puts the Group in an affluent cashflow position for land acquisition in regions such as Guangdong, Shenyang and Chongqing, which have strong growth potential with greater end-user demand and are less likely to be severely impacted by macroeconomic control measures by the Central Government. Non-deal roadshows have been held in Hong Kong and Singapore earlier, through which the management team has fully showcased the Group’s business philosophy, excellent management skills and superior product quality a number of internationally renowned fund houses, and the Group has gained recognition and favor of investors. Despite the recent market volatility, the notes were still well received by the international capital market. Moreover, a solid foundation is laid for the Group’s long-term development through establishing close relationships with reputable bank partners."