Recently, Evergrande Real Estate Group (3333. HK), a leading real estate enterprise of China, successfully issued 9.25 billion yuan of bonds on the international capital market to become so far the largest-scale issuance of notes valued at RMB and settled at USD (i.e. synthetic RMB bonds ), thereby further consolidating the steady operation situation of the Company.

On January 10, a news conference on Evergrande’s full-year sales performance in 2010 was held in Hong Kong. According to the data, in 2010 when real estate industry was subjected to stern regulation and control, Evergrande still obtained the sales amount of 50.42 billion yuan, an impressive result. Also, the management of Evergrande announced its total contracted sales target of 70 billion yuan and the sales target of handed-over residences of 60 billion yuan in 2011, and shared the news about the global bond issuance.

After the news conference, Professor Hui Ka Yan, Chairman of the Board of Directors of the Group, and Dr. Xia Haijun, Vice Chairman and President of the Group, led teams separately on a global road show for the bond issuance in Hong Kong, Singapore, London and other places. Impressed by the outstanding performance and tremendous development potentials of Evergrande, global institutional investors show great interest in the bond issuance. By January 14, the note offering had already attracted subscriptions amounting to a total of 33.1 billion yuan from 244 global institutional investors. The oversubscription of 3.6 times is proof that people take a positive view of the prospect, development strength, growth potentials and team execution of Evergrande.

The bond issuance not only has set a globally new record of scale in similar notes, but also is appealing to all market players due to its low interest rate. According to the data, the bonds issued this time carry a coupon rate of 7.50% for 3-year notes and 9.25% for 5-year notes, notably lower than that of traditional USD senior notes.

Analysts believe that, by choosing to issue bonds now, Evergrande can secure a lower interest rate than that of USD senior notes, improve its debt structure and increase the part of long-term debts in its loan portfolio. Meanwhile, considering the possibility of even tougher regulation and control waiting around the corner this year, the preemptive move of Evergrande to issue bonds for financing can make its operations more steady and enhance its capability of resisting risks and seizing market opportunities.