Strengthening CIFI's Shareholders' Base
HONG KONG, Oct. 16, 2013 /PRNewswire/ -- CIFI Holdings (Group) Co. Ltd. ("CIFI", or the "Group", HKEX Code: 884), one of the "Top 100 Real Estate Developers in China," announced that RRJ Capital ("RRJ") will invest US$ 50 million in the new shares of CIFI.
RRJ will subscribe to approximately 257 million new shares issued by CIFI at HK$1.52 per share. The new shares subscribed by RRJ will account for 4.4% of the existing issued share capital or 4.3% of the enlarged issued share capital of CIFI. The net proceeds from RRJ's investments will be used to acquire new projects or land for development, and/or general corporate purposes.
RRJ Capital is an Asian investment firm which focuses on China and SouthEast Asia. The firm currently manages two funds with an aggregate size of US$ 5.9 billion.
RRJ was founded by Mr. Richard Ong who is currently the Chairman and CEO of RRJ. Prior to starting RRJ, Richard was a co-founder and CEO of HOPU Fund I and had a 15-year career with Goldman Sachs with his last position there as Co-Head of Asia Ex Japan Investment Banking. Mr. Charles Ong is currently the Co-Chairman and Co-CEO of RRJ. Prior to joining RRJ in 2012, Charles was with Temasek Holdings for 10 years, where he held various positions including Chief Investment Officer and Chief Strategy Officer. From 2009 to 2011, he was Chief Executive Officer of Seatown Holdings International, a global investment firm under Temasek.
Mr. Lin Zhong, Chairman and Executive Director of CIFI, said, "We are glad to introduce RRJ Capital, one of the largest Asian investment funds focusing on China, as CIFI's key strategic and institutional shareholder. RRJ and their co-chairman, Mr. Richard Ong and Mr. Charles Ong, have in the past made many successful investments in Chinese property developers. RRJ's investment represents a vote of confidence in CIFI's business fundamentals, high-growth development strategies and management capabilities."
On its investment in CIFI, Mr. Charles Ong, Co-Chairman and Co-CEO of RRJ said, "We are pleased to be part of CIFI's exciting future. This transaction follows an earlier US$ 100 million USD bond investment in CIFI by RRJ. We are confident CIFI's experienced management team will continue to deliver solid results and provide long term value to shareholders."
Mr. Lin Zhong concludes that, "In the past year, CIFI has strived to develop our capital markets platform and we have successfully completed our IPO (US$ 214 million) in November 2012, issued two tranches of 5-year USD bonds (total US$ 500 million, first issue effective interest at 12.25% and second issue at 11.1%) and a 3-year syndicated loan (US$ 156 million, interest at HIBOR/LIBOR +5.65%) in 2013. RRJ's transaction will further improve CIFI's institutional shareholders' base and set an important development milestone for CIFI's capital market activities."
