CHINA: CIFI Holdings To Issue $250 Million Convertible Bonds

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CIFI Holdings (Group) Co. Ltd. (“CIFI” or the “Company,” and together with its subsidiaries, the “Group”), with headquarters in Shanghai and Hong Kong, is primarily engaged in the property development and investment business in the People’s Republic of China (“PRC” or “China”). We primarily concentrate on creating high-quality, end-user-driven properties in China’s first, second, and third tier cities. Our development projects include a wide range of property kinds, including residential, office, and commercial buildings. We are set to continue our quick expansion and develop into a prominent countrywide property developer by using our successful business strategy and excellent execution capabilities.

We now have a significant presence in China’s major first-, second-, and third-tier cities, as well as a statewide operating coverage. We had property developments in 71 cities in four regions as of December 31, 2019: the Yangtze River Delta, the Pan Bohai Rim, the Central Western Region, and the South China Region. We possessed a land bank with a total and attributable GFA of about 50.7 million sq.m. and 26.5 million sq.m., respectively, as of December 31, 2019. Looking ahead, CIFI aspires to become a leading and well-respected real estate firm in China, guided by our missions of “creating value for our clients” and “building for a better life.”

We have been supporting and practising the concept of responsible development for over two decades, with the United Nations’ “2030 Sustainable Development Goals (SDG)” as our guiding path. Along with commercial expansion, we pay close attention to meeting our environmental and social obligations, as well as meeting our commitments to stakeholders in a timely manner. We work consistently on design and technological innovation, preserve our corporate integrity and transparent culture, and engage in philanthropy, all in an effort to deliver on our company objective of “Building Better Lives” with ingenuity and dedication to product and service quality.

To thoroughly manage the Group’s ESG performance, the Group has included ESG governance into its corporate governance structure, employing a four-level working mechanism of “decision-making level, supervision and recommendation level, overall communication level, and executive level.” Furthermore, the Group has clarified its management objectives, responsibilities, and assessment mechanism, continuously improved ESG affairs and risk management, and ensured that ESG risk management, objectives, plans, implementation, and progress are communicated to the company’s directors and senior executives through regular reports. The goal of this project is to ensure the efficacy and continuity of ESG management.

The term “contracted sales” refers to sales made by the Group’s subsidiaries, joint ventures, and affiliated companies. Contracted sales data is not audited and is based on Group internal data. Contracted sales data is offered for investors’ reference only and may be subject to numerous uncertainties during the process of compiling such sales data. Fair value gains/losses, net exchange loss/gain, share option grant expenses, loss on early redemption of senior notes, and share of fair value gains/losses and net exchange loss/gain at joint ventures and affiliated firms, net of deferred taxes, are not included in “core net profit.”

Depending on whether documents are accessible, the site area information for a complete project is based on applicable land use rights certificates, land grant contracts, or tender documents. If more than one document is accessible, the information is based on the most recent available document. The GFA figures are based on figures supplied in or estimates based on relevant governmental documents, such as the property ownership certificate, construction work planning permit, pre-sale permit, construction land planning permit, or land use rights certificate.

The 6.95 percent bond due April 2025 has a conversion price of HK$5.53 per share, which is 20% higher than Thursday’s closing price. The shares represent 3.87 percent of the expanded capital if the bonds are fully converted. CIFI Holdings (Group) Co Ltd, a Chinese property developer, announced on Friday that it will issue three-year convertible bonds worth HK$1.96 billion ($250.22 million) to refinance a bond due to mature this month. The Shanghai-based firm is one of the few Chinese developers to be able to raise financing from the capital market, since liquidity for them was nearly depleted following the defaults of China Evergrande Group and others, which shook global markets. The 6.95 percent bond due April 2025 has a conversion price of HK$5.53 per share, which is 20% higher than Thursday’s closing price. The shares represent 3.87 percent of the expanded capital if the bonds are fully converted.

In a document, CIFI stated that the proceeds will be used for refinancing, including the imminent redemption of a 6.70 percent dim sum bond with an outstanding amount of 1.5 billion yuan ($236.29 million) due on April 23. Dim sum bonds are yuan-denominated bonds issued outside of mainland China. In early trading, CIFI’s Hong Kong-listed shares fell more than 13% to HK$3.98 in a market where the main Hang Seng Index fell 0.8 percent.

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