Sinic Holdings Successfully Launched the First Mid-to-Long-Term USD 210 Million Senior Notes

HONG KONG, June 12, 2020 /PRNewswire/ -- Sinic Holdings (Group) Company Limited ("Sinic Holdings" or "Company", stock code: 2103) (Fitch B+ stability/Moody's B2 stability/S&P B stability) is pleased to announce that the Company and the subsidiary guarantors entered into the purchase agreement with Guotai Junan International, BOC International, UBS, Credit Suisse, BNP PARIBAS, BofA Securities, CCB International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, CMB International, Haitong International, HSBC and Tianda Securities in connection with issuance of US$210 million senior notes ("Notes" or "Senior Notes") on 11 June 2020, with orders over US$1.5 billion, obtaining 7 times over-subscription. The coupon rate of the Notes was 10.50%, and the final pricing was 50 basis points lower than the guidance of the initial price.

The Company intends to use the net proceeds of the Notes issue to refinance certain existing indebtedness. The Company may also adjust its plans in response to changing market conditions, and thus, reallocate the use of the net proceeds.

The order size of the issuance exceeded US$1 billion an hour after the open of trading, and rose to US$1.5 billion at noon.The final issuance rate narrowed significantly by 50 basis points from the initial price guidance amidst strong appetite from high quality institutional investors. After the announcement of the final price guidance, the order size was over US$1.5 billion with 7 times oversubscription. It is the Company's first issuance of mid-to-long-term bonds, and the Company accurately grasped the window in the current volatile market environment. The initial launch of the project attracted extensive market interests, demonstrating the confidence of international investors in the Company's future development prospects. The Notes were eventually subscribed by 76 institutional investors, of which 98% from the Asian market, 2% from the European market; 85% from asset management companies/funds/hedge fund investors, 9% from private banks and 6% from bank investors.

Earlier on 8 June 2020, the Company received a B+ initial principal credit rating from Fitch, an international rating agency, with a stable outlook and a B+ rating on the Senior Notes. 

The Co-Chairman and Executive Director of Sinic Holdings, Mr. Zhang Yuanlin said, "The successful launch is an evidence of our long-term investment value, demonstrating the recognition of international investors of the Company's performance, stable financial position and high-quality development model. Looking forward, in terms of sales, we will adopt a more active and agile product sales and pricing strategy in response to the market change. In terms of operations, we will adjust the delivery cycle in a timely manner according to market demand. In terms of finance, we will carry out a more prudent financial policy and strengthen cash flow management with an aim of securing steady development with a healthy financial condition. Sinic Holdings will consolidate its current market position and further accelerate development of its business, striving to achieve the strategic development of laying a solid foothold in Jiangxi for nationwide development".

About Sinic Holdings (Group) Company Limited

Sinic Holdings (Group) Company Limited is a large-scale and comprehensive property developer in the PRC, focusing on the development of residential and commercial properties. Through over 10 years of operations, the Company has successfully established a leading position among residential property developers in Jiangxi Province and expanded its property development business into the Yangtze River Delta Region, the Greater Bay Region and the Central and Western China Core Cities and other regions with high-growth potential. According to the rankings of CRIC, China Index Academy and EH Consulting, the company ranked 36th, 32nd, and 31st in terms of sales amount (including all income) among real estate development enterprises of China in 2019. The Company was recognized as one of the China's Top 50 Real Estate Developers jointly by the China Real Estate Industry Association, Shanghai Yiju Real Estate Research Institution and China Real Estate Appraisal in 2018 and 2019, and one of the China's Top 30 Real Estate Developers in 2020 and Growth Top 10 in 2020 by the China Real Estate Top 10 Research Committee and China Index Academy in 2020.

The Company residential properties can be categorized into three major series, namely, the "Wan" Series, the "Yuan" Series and the "Yue" Series, which target first-time home purchasers, home upgraders and extended families or high-income households, respectively. As of December 31, 2019, the total land bank attributable to the Company amounted to approximately 15.09 million sq.m., and the Company had 117 projects at various stages of development.

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