April 13, Evergrande Real Estate Group in Hong Kong issued 600 million U.S. dollars of senior notes to Chinese Estates and its chairman Joseph Lau, wherein, Chinese Estates holds 350 million U.S. dollars, and Joseph Lau holds 250 million U.S. dollars, due in 2015.

President Dr. Xia Haijun said that Evergrande has always concerned about the changes in the capital market. Last year, it expected the mainland would gradually tighten the money supply this year, so in January this year, it issued 750 million U.S. dollars of notes. This year, it further issued 600 million U.S. dollars of notes; as a result, a total of 1.35 billion U.S. dollars have been raised.

Evergrande is one of the few real estate companies with an understanding of capital market operation. It has a good team with great knowledge of capital market, so it progresses quite well in taking advantage of the capital market to raise funds. It is reported that Joseph Lau, Cheng Yu-tung and other Hong Kong tycoons have good relationship and communication with Evergrande, and they have given strong support to Evergrande in terms of listing and financing by issuance of notes.

President Xia Haijun said, when the Group issued notes in January, Joseph Lau subscribed for 150 million U.S. dollars. When the Group was listed, he also spent 50 million U.S. dollars to buy the shares. This time, he and his Chinese Estates spent 600 million U.S. dollars to purchase a new group of notes, with the total investment into Evergrande reaching 800 million U.S. dollars. He said that the Group has been studying public offering of notes at the capital market, but after consultation with Joseph Lau, Joseph Lau said he had interest in full acquisition, and the Group believed that this form was fast and easy, so it decided to sell all the notes.  Joseph Lau and his Chinese Estates will keep a long-term holding of the notes, so there is no effect on the price of other Evergrande bonds. Credit rating agency Moody confirms that Evergrande has a stable credit outlook, and believes that the issuance of notes can bring additional funds to Evergrande to implement the rapid growth planning. During the first quarter of this year, Evergrande bonds continued seeing strong sales, with contract sales over 8.3 billion yuan.

Joseph Lau who fully subscribed for the Evergrande notes said that such huge investment of himself and Chinese Estate in Evergrande is the "first time in life", and he has great confidence in Evergrande. Evergrande's sales performance is the source of his confidence. The Group not only achieved a good sales performance last year, but also ranked the first in the country in terms of sales area in the first quarter of this year, and came out in front in terms of sales revenue. The Group is confident that its performance will be better this year.