Logan Group Successfully Issues 7-year Notes, Breaks Records with Longest Maturity and Lowest Coupon Rate

(China/Hong Kong, January 7, 2021) Logan Group (3380.HK) has announced that the Company successfully issued US$300 million of 7-year senior notes on January 6, with an annual coupon rate of 4.5%. The issuance achieved new records for Logan Group’s offshore bonds, which are now the bonds with the longest maturity and lowest coupon rate. The successful issuance once again demonstrated that the international capital market recognizes Logan Group’s steady financial management and high growth potential across cycles.

The issuance at the beginning of the year received an overwhelming response from the capital market. It was over-subscribed more than 10 times with numerous long-term institutional investors taking part, and the issuance attracted high-quality orders from notable asset management companies, sovereign funds, insurance funds across Europe and Asia. The issuance was finally priced at an annual coupon rate of 4.5%, which was significantly narrower than the initial price guide by 50 basis points, achieving a successful issuance outcome.

Deutsche Bank, Guotai Junan International, Credit Suisse, UBS, Haitong International, China CITIC Bank International, Citigroup, Barclays, BNP PARIBAS, The Bank of East Asia, Limited and CMBC Capital are the joint global coordinators and joint lead managers in respect of the offer and sale of the notes.

Logan Group has always adhered to a safe and stable financial strategy and a city-focused penetration strategy. The Company’s landbank, profitability and comprehensive competitiveness have strengthened continuously over the years. With the implementation of the new financing management rules for real estate companies, higher requirements have been placed on companies to improve their cash management capabilities as well as reasonable leverage control, in order to ensure the stability and long-term development of the industry. The requirements are expected to make it easier for real estate companies with healthy financials to stand out. 

The successful issuance of the bond with the longest maturity in the Company's history shows that the international bond markets favor high-quality and leading real estate enterprises with good capital structure and high growth prospects amid intensified differentiation within the industry. Logan Group's management believes that this bond issuance will help further optimize the debt structure, continue to reduce financing costs, and lay a solid foundation for achieving cross-cycle high-quality development of the Company.

In 2020, Logan Group was selected as one of the Fortune China 500 for the seventh consecutive year, rising to 184th place. In the same year, Logan Group became a constituent stock in the "Hang Seng Composite LargeCap Index”, which reflects the Company’s outstanding profitability among the industry and steady increase in its capital value. The international rating agencies Standard & Poor's and Fitch have both reiterated the Company’s credit rating at "BB". The notes are rated "BB" by Fitch Ratings and "BBB-" by Lianhe Ratings Global Limited.