On 30 July 2019, China Aoyuan Group Limited (“Aoyuan” or the “Company”, 3883.HK) successfully priced a US$250mm reopening of its existing US$225mm 7.95% senior bond due February 2023 (the “Transaction”), with AMTD acting as the Joint Bookrunner and Joint Lead Manager. The Transaction represents the seventh successful Aoyuan USD bond offering in which AMTD has acted as Joint Bookrunner and Joint Lead Manager, including US$225mm 4NC3 bond offering in February 2019, US$275mm reopening of its 2021 bonds in Jan 2019, US$175mm reopening of its 2020 bonds in Jul 2018, US$200mm 3NC2 bond offering in May 2018, US$250mm 5-year bond offering in Sep 2017 and US$250mm 3-year bond offering in Jan 2017. This re-affirms AMTD’s leadership in the international debt capital markets and the success of this Transaction demonstrates AMTD’s strong ability to advice its clients to choose the optimal market window as well as its commitment in assisting leading Chinese property developers to tap the offshore USD bond in particular.
The issuer of the Transaction is China Aoyuan Group Limited, with standard share pledges and guarantees from certain non-PRC subsidiaries. The Company is rated B1 Positive by Moody’s / B+ Positive by S&P / BB- Positive by Fitch while the transaction is rated B2 (M) / B (S) / BB- (F) respectively. The company found an opportune market window to retap and complete their USD bond funding plan for 2019.The reoffer yield of 6.5% is the lowest recently amongst similarly-rated issuances. Combining with the original note, total issuance size reaches US$475 million, it showcase the Company’s solid financing strength.
China Aoyuan is the founder of China’s composite real estate, which is rooted in Guangdong and focus on the Greater Bay Area, with various projects in the South China region, the central and western core regions, the East China region and the Bohai Sea. As of December 31, 2018, the total area of its land bank was approximately 34.1 million square meters, distributed in 70 domestic and foreign cities. With a sound financial position and excellent operational management, Aoyuan has a compound annual growth rate of 89% in contract sales from 2016 to 2018, which continues to exceed the industry average. Carrying the brand idea of “Building a Healthy Lifestyle”, Aoyuan pushed forward the upgrade of integrated property projects and brought in healthy lifestyle in cities. In 1H2019, Aoyuan recorded strong contracted sales of RMB53.63 billion, representing a year-on-year growth of 33% and a 47% completion of the full year target. Aoyuan has also announced a positive profit alert recently, expecting a year-on-year growth of over 50% on core net profit for the first half. AMTD has assisted Aoyuan and its associated companies in multiple capital markets transactions. Including this transaction, AMTD has assisted Aoyuan to issue USD bonds in the international bond capital market for seven times in the past three years, which have been warmly welcomed by the capital market. Moreover, AMTD also acted as the Joint Global Coordinator and Joint Lead Manager in the Hong Kong IPO of Aoyuan Healthy Life Group Co., Ltd., a subsidiary of Aoyuan Group which is a well-known property management service and business operation service provider in China.
As a comprehensive financial institution rooted in Hong Kong, based in the Greater Bay Area, backed by China and covering the globe, AMTD has always been committed to providing clients with open-end, innovative, diversified and professional financial services and helping more and more companies from Hong Kong, Greater Bay area, China and Asia to expand business coverage, implement strategic goals and achieve global layout. In addition to Aoyuan Healthy Life Group, AMTD has also completed a number of Hong Kong and US IPO for various industry-leading companies in the Greater Bay Area, including the Hong Kong IPO of Guangzhou Rural Commercial Bank, the first Guangdong-based bank listed in Hong Kong; the Hong Kong IPO of Mobvista, a leading technology services platform for global app developers; the Hong Kong IPO of Edvantage Group, the largest private business higher education group in the Greater Bay Area; the US IPO of X Financial, the leading Fintech company based in Shenzhen; the Hong Kong IPO of 7Road, the leading web game developer and operator in China; the US IPO of Aptorum, a Hong Kong-based pharmaceutical company and the Hong Kong IPO of Weigang, a leading comprehensive hazardous waste incineration turnkey solution provider. On top of the numerous Hong Kong and US IPOs for leading enterprises in the Greater Bay Area, AMTD also assisted a few Hong Kong-based conglomerates, including New World Development, Sun Hung Kai & Co, Far East Consortium, Emperor Group, Regal Hotels Group, CSI Properties, and several Greater Bay-based companies including Guangzhou Metro, Aoyuan Group, Logan Property, LVGEM, R&F properties, China South City etc. to successfully issue bonds in the international bond capital markets. Moreover, during the World Economic Forum’s annual meeting in Davos, “Greater Bay Night” was successfully held by the AMTD Group. The event was officiated by Carrie Lam, Chief Executive, Hong Kong SAR Government and Wen Guohui, Deputy Party Secretary of CPC Guangzhou Municipal Committee and Mayor of Guangzhou respectively. Ren Xuefeng, Deputy Party Secretary of CPC Chongqing Municipal Committee and former Deputy Secretary of CPC Guangdong Provincial Committee and Secretary of CPC Guangzhou Municipal Committee and Dai Dongchang, Vice Minister of Transport attended the “Greater Bay Night”. This is the first time to host conference themed with “Guangdong-Hong Kong-Macao Greater Bay Area” in Davos’ history for nearly 50 years. It is officiated by the two most representative guests from the Greater Bay Area, the Chief Executive of the Hong Kong SAR Government and the Mayor of the Guangzhou Municipal Government. This was the first time for the Greater Bay Area to showcase the development opportunities and achievements to the world at the Davos annual meeting of the World Economic Forum. In addition, under the joint witness of Hong Kong SAR Government and Guangzhou Municipal Government, AMTD Group announced the inauguration of Greater Bay Young Entrepreneurs Association (GBYEA) which was jointly established by innovative enterprises including Greater Bay Area Investment Group, Royole, iFLYTEK, GOGOVAN, DayDayCook, etc. in the Greater Bay Area. With the objective of “Leveraging the opportunities of the Greater Bay Area, Enhancing interconnection and Promoting innovative development” and the principle of “Innovation, Mutual assistance and Openness”, the Association is committed to connecting domestic and overseas resources and channels, promoting start-ups of the Greater Bay Area to seize the opportunities, contributing to the development of construction and innovation of the Greater Bay Area.