Lower Funding Cost as Compared to the Previous Issue
HONG KONG, Sept. 12, 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 the Group had successfully issued additional five-year US dollar senior notes following the issuance of US dollar senior notes in April 2013. The principal amount of the additional issue is US$225 million, at an issue price of US$104. The effective interest rate of the Issue is approximately 11% and the Notes will be due by April 2018. The current issue will be fully fungible with the notes issued in April 2013. US$125 million of the Notes issued were placed with institutional investors by Citigroup, Standard Chartered Bank, Deutsche Bank, HSBC and Haitong International as joint lead managers and joint bookrunners. As the private tranche of the transaction, RRJ Capital subscribed US$100 million senior notes.
The net proceeds from the Notes issue will be used to refinance existing indebtedness of the Group, to acquire new projects or land for development, to develop existing projects in the PRC and for other general corporate purposes. The Notes Issue received an overwhelming response; the public tranche offering to institutional investors was over-subscribed by more than ten times.
CIFI has received issuers' credit ratings of B+ from Fitch, B1 from Moody's and B+ from Standard & Poor's. The latest Notes Issue received issuers' credit ratings of B+ from Fitch, B2 from Moody's and B from Standard & Poor's.
