(EQS-News / 30/04/2015 / 11:42 UTC+8)
[For immediate release]
With support by CDB Capital on the company's project pipeline
CNTD issues RMB1.3billion guarantee notes
(Hong Kong and Singapore, 29 April 2015) - China New Town Development
Company Limited - the future blueprint planner and leading developer of
integrated new towns in China (the "Company", "CNTD", the "Group"; HKSE:
1278.HK; SGX: D4N.SI, its ultimate controlling entity is China Development
Bank Capital Corporation Ltd. ("CDB Capital"), is pleased to announce that
the Company has completed an issuance of guarantee notes, at an offering
size RMB1.3billion. The transaction represents one of the largest offering
of RMB bonds in Hong Kong this year. The guarantee notes with its maturity
3 years bear interest at the rate of 5.5%.
The issuance of guarantee notes was completed on 28 April. At the initial
interest rate of 5.8%, the offer attracted profound support by a
cornerstone investor within half an hour since its launch. It saw multiple
times of over-subscription. With applications for subscription from
plentiful renounced bond investors, the interest rate of the guarantee
notes was determined at 5.5% at a principal amount of RMB1.3 billion.
CNTD is one of the earliest enterprises to have participated in the
business of the township development. With 12-year experience in
development and operation of new towns, the Group's operations cover the
entire industry chain. Both of its development projects and the management
teams enjoy the leading positions in the industry. Since having become a
member of the CDB Capital on 28 March 2014, the Company receives vigorous
support by the controlling shareholder in different aspects such as
business development and financing. Speaking of the support by CDB Capital,
the issuance of the guarantee notes is no exception. CDB Capital profoundly
enhanced the Company's credit via a keepwell and liquidity support deed and
a subscription agreement thus capturing the attention among the investors
at the Company. Moreover, this is the first time that CDB Capital being the
guarantor of its subsidiaries on their bond offering. The transaction
reflects that CDB Capital attaches great deal of importance to the Company.
Established in 2009, CBD Capital is a wholly-owned subsidiary of China
Development Bank ("CDB"), one of the largest policy banks and the only
licence holder of Renminbi direct investment in China. CDB Capital has
become one of the largest Renminbi investment institutes nationwide within
the 6 years since its establishment. Adhering to CDB's principal in
supporting China's urbanization process via financing, CDB Capital has
regarded new model urbanization as one of its core business modules, and
fully leverages the synergy between CDB and itself to facilitate the
development of new model urbanization. Since 2008, CDB Capital has
accumulated experience in the new model urbanization related investment and
has successfully stretched its presence nationwide, providing financing
support to the constructions of new model urbanization.
CDB Capital intends to take its new town development business into the next
level. It does not limit itself merely in investment but look forward to
tapping into the development and operation of the new town projects via its
professional subsidiaries. CDB Capital completed its subscription of 54.3%
enlarged shares of the Company and incorporated its resources and
operational rationale into the Company. CDB Capital intends to turn the
Group into the leading developer and operator of new towns and establish
operational platform and offshore financing platform with a view to
facilitating the business development of the Company.
The spokesman of CNTD comments, "The issuance of the guarantee notes is a
significant breakthrough on the Company's offshore financing exercises. It
does not only optimize the Compnay's financing costs, but also establishes
the goodwill of the Company as well as CDB Capital in the offshore capital
markets. Moreover, the transaction fully reflects CDB Capital's vigorous
foundation and its support to the Company's development. The purpose of
this financing exercise is primarily for the Company's business development
and is believed to be favourable to the expansion of the Company's project
pipeline. An enriching project portfolio hence will constitute a more
attractive and stable business model."
"Save from the issuance of the guarantee notes, CDB Capital had also
offered unconditional guarantee on a bank loan for the Company, opening
another onshore financing channel to the Company. Looking ahead, with the
comprehensive support of the controlling shareholder, the Company is
confident in continuously optimizing its financing structure, enhancing the
financing efficiency, and leverages the capital to facilitate its project
pipeline, so as to expand the Company's assets that create better returns
of the shareholders."
-END-
About China New Town Development Co. Ltd.
(HKSE: 1278.HK; SGX: D4N.SI)
With its new town development founded in 2002, China New Town Development
Co. Ltd. was first listed on the SGX in 2007 and dual listed on HKSE in
2010. It is a company dedicated to planning and developing new town
projects in the PRC. Its actual controlling shareholder is China
Development Bank Capital Corporation Ltd. ("CDB Capital "). CDB Capital is
a wholly owned subsidiary of China Development Bank. Its establishment was
approved by the State Council. With a registered capital of RMB 47.6
billion, CDB Capital is a unique integrated investment platform covering
both domestic and offshore markets. Its investments cover areas the
strategic new model township developments, overseas investments, and funds.
Integrated new model township development is one of the core businesses of
CDB Capital. Through its unique business model, the Company forms joint
ventures with local governments to develop new town projects, and
participate in the full range of activities including master planning,
resident relocation and resettlement, land clearing and preparation,
construction of infrastructure and high quality ancillary facilities. It
also introduces quality brands and leading real estate developers into the
new towns it operates to enhance the long term value of the town and its
land resources. It then shares part of the value enhancement upon land
sales. Starting from 2002, the Company has been engaged in the development
of Shanghai Luodian New Town, Wuxi Hongshan New Town and Shenyang Lixiang
New Town. Among them, the Luodian New Town has entered maturity phase and
received international and domestic recognition for its innovative new town
design and execution. The Luodian New Town was granted the prestigious
status of "United Nations Development Program Pilot Town" by the United
Nations Development Program and "National Development and Reform Pilot
Small Town" by the National Development and Reform Commission (NDRC).
Recently, it was awarded the "EU Small Town Union - Representative Member
from Asian Pacific".
Enquiry
Hong Kong Singapore
Financial PR (HK) Limited Financial PR (Singapore) Limited
Hon Fung, Dawn Lee, and Canace Charlotte Fu, Zhang Yuchao, and Ngo Yit
Email:staff@financialpr.hk Sung
Tel: (852) 2610 0846 / 633 55 Email:staff@financialpr.sg
933 Tel: (65) 6438 2990
Fax: (852) 2610 0842 Fax: (65) 6438 0064
End of Press Release
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Document: http://n.equitystory.com/c/fncls.ssp?u=FCMLNYWWNF
Document title: With support by CDB Capital on the company's project
pipeline, CNTD issues RMB1.3billion guarantee notes
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(END) Dow Jones Newswires
April 29, 2015 23:42 ET (03:42 GMT)
