Yuzhou Properties Company Limited
Yuzhou Properties Successfully Undertook Public Offerings of Domestic Corporate Bonds Five Years of RMB3 Billion at an annual Coupon Rate of 5.1% Subscribed 2.8 Times
Yuzhou Properties Successfully Undertook (10 December 2015, Hong Kong) Yuzhou Properties Company Limited (“Yuzhou Properties” or the “Company”, together with its subsidiaries referred to as the “Group”; stock code: 01628.HK), the leading Fujian-based property developer, is pleased to announce that, Xiamen Yuzhou Grand Future Real Estate Development Company Limited (“Xiamen Yuzhou Grand Future”), an indirectly wholly owned subsidiary of the Company established in the PRC, has successfully issued the domestic corporate bonds (“The bonds”) with a term of five years in principal amount of RMB3 billion through public placement. The bonds were subscribed 2.8 times the base issue size, and the annual coupon rate was as low as 5.1%. The bonds was listed on the Shanghai Stock Exchange at an base issue size of RMB 2 billion, with a right to over-allot an additional amount of up to RMB1 billion. According to the result of book-building documentation, the bonds was subscribed 2.8 times the base issue size with a total of RMB3 billion bonds being successfully issued at a coupon rate of 5.1%. The proceeds from the issue of the corporate bonds will be used for repayment of existing debts and general working capital. Mr. Lam Lung On, Chairman of Yuzhou Properties, stated, “Recent investment demand in domestic bond market has weakened. However, the Company still successfully issued corporate bonds with a term of 5 years of RMB3 billion at an annual coupon rate as low as 5.1%, which is the lowest among private property developer of the same rating level since the end of October. Meanwhile, the credit rating of the issuer and the bonds are both AA, and the bonds obtained nearly 3 times subscription, all of which fully demonstrates capital market’s well-recognition of Yuzhou Properties’ development strategy and operations management capability. With the record low costs of corporate bonds issued by Yuzhou Properties, this successful issuance will help broaden the Company’s financing channels, optimize debt structure, lower financing costs, and further improve the Company’s financial strength, so as to lay solid foundation for the future development of the Company’s business. “ Previously, through Xiamen Yuzhou Grand Future, Yuzhou Properties had successfully completed the issue of the corporate bonds in an aggregate amount of RMB2 billion with a term of three years through private placement with fixed interest rate of 6.7% per annum which is the lowest level among private enterprises of the same rating level year to date. Since its listing, Yuzhou Properties has insisted on balanced and rapid growth, implementing penetrating strategies in core cities. The contract sales scale of the Group has constantly expanded with the compound annual growth rate of 36% from 2012 to 2014. In addition to rapid growth, Yuzhou Properties has maintained a higher level of gross margin than its peers, and the gross margin for the first half of 2015 was 34%. Yuzhou Properties not only has secured the leading position in Xiamen in terms of land reserves and market shares, but also expanded its businesses to the Yangtze River Delta Region, becoming one of the top four developers in Hefei, and has rooted in first-tier and second-tier coastal cities like Shanghai and Nanjing. Since the beginning of this year, the contracted sales amount for the first eleven months has reached to RMB12.188 billion, achieving nearly 90% of its sales target for the year. Additionally, Yuzhou Properties has been effectively managing its financial condition, keeping its net gearing ratio at a healthy level; and has established a good brand image in international capital market, receiving wide recognition. The annual coupon rate of offshore senior notes with a term of 5 years gradually decreased from 13.5% to 8.625%. As of 30 June 2015, the net gearing ratio of Yuzhou Properties was 69%, and the weighted average financing cost dropped to 8.17%. Chairman Mr. Lam concluded, “Since the beginning of this year, Yuzhou Properties achieved a 21.6% year-over-year increase in contracted sales, and we have great confidence in accomplishing this year’s target. We have successively acquired six quality land parcels in Xiamen, Hefei, Nanjing and Shanghai, and thereby enhanced our deployment in first-tier and second-tier coastal cities. Based on that, the successful issuance of the domestic corporate bonds further improved the Company’s strength, making contribution to the Group’s sustainable development in the future, and will create the greatest reward for the shareholders.” – End – About Yuzhou Properties Company Limited Established in 1994, Yuzhou Properties specializes in the development of high quality residential, retail and commercial projects. As at 10 December, 2015, the Company had around 50 projects under various stages of development in Xiamen, Fuzhou, Shanghai, Tianjin, Nanjing, Hefei, Quanzhou, Zhangzhou, Longyan, Bengbu and Hong Kong. Sites measuring a total GFA of over 9.34 million sq. m. are under development or held for future development. Those located in Xiamen measure a total GFA of 2.22 million sq. m and in Hefei measure a total GFA of 2.54 million sq.m. Known for its outstanding product quality and diversified product portfolio, strong brand awareness and its experienced management team, Yuzhou Properties has been named “Top 100 China Real Estate Enterprises” for ten consecutive years; and Top 50 China Real Estate Enterprises from 2011 to 2015. “Yuzhou” brand has been recognized by the State Administration for Industry and Commerce as a “Renowned Brand in China” and a “Famous Brand” by the Fujian provincial government and the Xiamen municipal government. For more information about Yuzhou Properties, please visit the company’s website: Please feel free to contact us if you have any enquires: Wonderful Sky Financial Group Holdings Limited (HKEX: 01260) End of Press Release +++++ Document: http://n.equitystory.com/c/fncls.ssp?u=MUNADACKMI Document title: Yuzhou Properties Successfully Undertook Public Offerings of Domestic Corporate Bonds Five Years of RMB3 Billion at an annual Coupon Rate of 5.1% Subscribed 2.8 Times Key word(s): Miscellaneous
10/12/2015 Dissemination of a Press Release, transmitted by EQS TodayIR – a company of EQS Group AG. |