Successfully issued the second tranche of domestic corporate bonds
Strengthen the debt structure and lower the financing costs
HONG KONG SAR - Media OutReach - 21 July 2021 - CIFI Holdings (Group) Co. Ltd. ("CIFI" or the "Group", HKEx stock code: 884), a leading real estate developer engaging in property development and investment in first-, second- and robust third-tier cities in China, is pleased to announce that from 8 July 2021 to 20 July 2021, its major shareholders Lin's Family increased their shareholdings again, of which Executive Directors and controlling shareholders, Mr. Lin Zhong, Mr. Lin Wei and Mr. Lin Feng, had purchased an aggregate of 15,102,000 shares of CIFI at a total consideration of approximately HK$80.65 million. Executive Director and CFO, Mr. Yang Xin and his spouse also purchased 1,000,000 shares on 20 July 2021.
Immediately after the purchase, Lin's Family owns 4,511,682,342 shares, representing approximately 54.58% of the total issued share capital of CIFI as 20 July 2021.
In addition, the Group successfully completed the public issuance of the second tranche of the domestic corporate bonds on 20 July 2021. The actual size of the bonds is RMB3.0 billion with a coupon rate of 4.2% per annum and the maturity is five years, with an option for the Issuer to adjust the coupon rate and a put option for investors at the end of the third year. The price of the domestic corporate bond is at the lowest since 2021 for private real estate developers with the same maturity and the issue size of more than RMB3.0 billion. The total bids are RMB4.79 billion with over 1.6 times subscriptions. Among them, non-bank institutions actively subscribed and the final coupon rate was 4.2 %.
The spokesperson of CIFI said, "The increase in shareholding by the controlling shareholders and management reflects their strong confidence in CIFI's long-term development and room for future increase in stock price. In addition, facing the severe macroeconomic situation and volatility in risk appetite in the capital market, with the strive of the corporate team, coupled with the support of managements, they created excellent results in the open market. Looking ahead, CIFI will continue to lower the overall financing costs and strengthen the debt structure to implement prudent financial management and consolidate the leading position in the Chinese property market and generate encouraging return to our shareholders."