Powerlong Real Estate Holdings Ltd. (“Powerlong” or the “Company”; stock code: 1238; together with its subsidiaries, the “Group”), the leading commercial properties developer in China, is pleased to announce a successful new issuance of RMB 1,500 million 10.75% senior notes due 2017. The valid order totaled about RMB 6.4 billion, which means an over-4-times-subscription, indicating that investors have great confidence in Powerlong’s sustainable development.

So far, the senior Notes are the largest RMB Notes among single B rating name among mainland developers. Among of the valid order, 75% comes from investment funds and asset management companies, 25% goes to private banks and companies. BofA Merrill Lynch, Credit Suisse, Guotai Junan, Haitong, HSBC, UBS and VTB Capital are the joint lead managers and joint bookrunners in respect of the offer and sale of the Notes. They are also the initial purchasers of the Notes. The Company intends to use proceeds of the Notes to refinance its existing indebtedness.

The Chairman of Powerlong, Mr. Hoi Kin Hong said, “Powerlong has been top5 commercial developer in mainland, pursuing steady and fast development to guarantee projects profit, shareholder interests and the maximization of corporate value. The successful issuance of the Notes will reduce the financing cost, optimize the debt structure and further increase liquidity of the Company."

Mr. Hoi Kin Hong added, in the first half of 2014, facing with the fluctuation of the market, the contracted sales of the Powerlong reached approximately RMB3,689 million, representing an increase of approximately 25.4% as compared with the corresponding period in 2013, while the contracted sales area of the Company amounted to approximately 430,887 square meters, representing an increase of approximately 17.6% as compared to the corresponding period in 2013. Meanwhile, revenue, net profit as well as core profit all increased, indicating a steady improvement of the Company’s business performance. Looking forward, the Company will insist on the objective of intensive development in Shanghai and focus on Yangtze River Delta, Shandong and Fujian regions and delicate to deliver better returns to shareholders.