Receives Overwhelming Response with Over-subscriptions to Involve Capital of Approximately US$800 Million
Hong Kong, Nov 11, 2014 - (ACN Newswire) - COFCO Land Holdings Limited ("COFCO Land Holdings" or the "Company," stock code: 207), a large commercial property developer and operator specialising in the development, operation, sales, leasing and management of complexes and commercial properties in China, has announced that on 10 November 2014, the Company and Double Rosy Limited entered into a subscription agreement in connection with the issue of guaranteed notes (the "Notes"). The issue of the Notes has received overwhelming response with over-subscription.
The Company issued an aggregate principal amount of guaranteed notes of US$800 million through Double Rosy Limited, its wholly owned subsidiary, and this is the first time for the Company to issue public offering bond. The Notes will mature on 18 November 2019 and the issue price of the Notes will be 99.493% of the principal amount of the Notes. The Notes will bear interest from and including 18 November 2014 at the rate 3.625% per annum, payable semi-annually in arrears on 18 May and 18 November in each year. The Notes are expected to be assigned a rating of "A-" by Fitch Rating Ltd.
The net proceeds (after deducting underwriting commissions and estimated offering expenses) are estimated to be approximately US$790.8 million. The net proceeds are intended to be used for general corporate purposes and to on-lend to the Company for partial payment of consideration in relation to a proposed acquisition of the Joy City projects.
Mr. ZHOU Zheng, Chairman of COFCO Land Holdings said, "We have successfully communicated with bond investors against the backdrop of a huge asset acquisition. We believe the issue of the Notes has capitalised on a favourable market window and will provide us an opportunity to raise further capital to finance of proposed acquisition of the Joy City projects. The transaction also enables us to pro-actively manage our capital structure and provides us with financial flexibility for further expansion of our business. The issue of the Notes has received overwhelming response from the investors with the issuing size exceeding our expectation. Subscriptions were from over 260 investors in 27 countries and areas. Meanwhile, the current issue price also demonstrated the trust and support from the capital market towards our credit."
About COFCO Land Holdings Limited
COFCO Land Holdings is a large-scale commercial property developer and operator, focusing on development, operation, sales, leasing and management of mixed-use complexes and commercial properties. It is also the only commercial property company and an overseas-listed property business platform under COFCO Corporation, a Global Top 500 enterprise. Under its flagship brand "Joy City", focusing on the development of mixed-use complexes in first- and second-tier cities and following the two-wheel-driven strategy of "holding plus selling" to build a high quality business portfolio, the Company intends to maintain a balanced cash flow and establish sustainable business operations. The Company has developed and currently possesses 21 property projects in Beijing, Shanghai, Sanya, Chengdu, Nanchang, Suzhou and Hong Kong. The projects span a range of business segments and are located in premium core areas of first- and second-tier cities in China with good investment and appreciation potential.
Source: COFCO Land Holdings Limited
Contact:
Strategic Financial Relations (China) Limited Ms Nan Dong Tel: (852) 2864 4811 E-mail: nan.dong@sprg.com.hk Ms Ada Leung Tel: (852) 2114 4967 E-mail: ada.leung@sprg.com.hk
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