Greentown China Holds Signing Ceremonies for US$1,400 Million Worth of Low Interest, Unsecured Loan Agreements in Hong Kong

On 16 and 17 July, Greentown China Holdings Limited (“Greentown China” or the “Company”) (3900.HK) successfully held signing ceremonies for two offshore syndicated loan agreements in a row with 18 major banks in Hong Kong lead arranged by The Hongkong and Shanghai Banking Corporation Limited as well as with Bank of China (Hong Kong) Limited, respectively.

Pursuant to which Greentown China has been awarded low-interest, unsecured loan facilities in an aggregate of US$1,400 million (approximately RMB9.4 billion). In-depth view exchanges with banks were carried out at the events to promote long-term cooperation.

Mr. Cao Zhounan, Chief Executive Officer of Greentown China Holdings Limited, said, “In face of the mounting challenges prevailing in domestic and overseas capital markets, the ability of managing financing has become one of the important criteria for assessing the core competitiveness of a corporation. By channeling tremendous efforts in recent years, Greentown China has striven to achieve an effective balance of quality, efficiency and scale, marching onto a new track of quality, steady growth. We are pleased to have received full support for the loan facilities from the banks, which have a deep working relationship with and are long-term partners of Greentown China.

The two unsecured term loan facilities were awarded at much lower interest rates for even longer terms. Of these, the three-year dual-currency syndicated term loan facility of up to US$800 million equivalent with 18 major banks in Hong Kong lead arranged by The Hongkong and Shanghai Banking Corporation Limited comes with an annual interest rate of HIBOR/LIBOR+2.565%, down 56.5 basis points as compared with the syndicated loan interest rate the Company currently has at the moment.

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The bilateral loan facility with Bank of China (Hong Kong) Limited comprises two parts. The annual interest rate of the three-year US$300 million term loan portion is LIBOR+2.80%, which denotes a drop of 20 basis points as compared with that of our current bilateral loan facility. The other five-year US$300 million facility at an interest rate of LIBOR+3.30% allows us to not only enjoy the longest time span we have ever had for offshore loans, but also have the lowest interest rate and the longest term that mainland property developers with the same rating can ever accomplish. Drawing a sharp contrast to the prevalent challenges in the current market environment, these empower us with very competitive financing costs and provide a strong backing of our business layout of ‘Combining Light Assets with Heavy Assets’ as we forge ahead. We are set for a new journey of success striving for making quality advances by leaps and bounds.”

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