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| 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."
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
Topic: Press release summary
Source: Joy City Property Ltd
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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