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HYDOO Proposed Issue of Convertible Notes of US$120,000,000   

Entered into Strategic Cooperation Framework Agreement with Ping An Real Estate

Release time:2015-01-09 | Source:Hydoo Holding


Raise Additional Funds for Investing in Existing and New Projects


    Hydoo International Holding Limited (“HYDOO” or the “Company”; stock code: 1396.HK), a leading developer and operator of integrated large-scale trade and logistics centers in China, today announced that the Company entered into the Purchase Agreement with Pingan Real Estate (HongKong) Company Limited (“Pingan Real Estate Hong Kong”), whereby Ping An Real Estate Company Limited (“Ping An Real Estate”) agreed to purchase the 7% Convertible Notes that HYDOO issued, with an aggregate principal amount of US$120,000,000 due 2020.


    Assuming full conversion of the Notes at the Initial Conversion Price of HK$1.956, the Notes will be convertible into 475,742,331 Shares, representing approximately 11.85% of the existing issued share capital of the Company and approximately 10.59% of the issued share capital of the Company as enlarged by the issue of the Conversion Shares. The Notes bear interest from and including the date of issuance at a rate of 7.00% per annum of the principal amount of the Notes, payable semi-annually in arrears on the Interest Payment Dates. The Notes Issue will raise immediate funds for the Company, which can be used for investing in existing and new projects including expansion of the logistics business and/or other general corporate finance purposes. The Company seeks to capitalize on the current market environment for convertible bond issues to raise capital to facilitate further development and expansion of the Company.


    Meanwhile, HYDOO and Ping An Real Estate entered into the Strategic Cooperation Framework Agreement in a term of 5 years, pursuant to which Ping An Real Estate in addition to the corporate-level investment through the Notes, intends to make strategic investments of up to RMB1.5 billion in aggregate in the Company’s future trade center and logistics projects in the cities where the Company has competitive advantages. The Company will apply to the Stock Exchange for the listing of, and permission to deal in the Conversion Shares.


    Mr. Wang Jianli, Chairman of HYDOO, remarked, “The proposed issue of Convertible Notes will raise additional funds for further business development of the Company. It is our pleasure to enter into strategic partnership with Ping An Real Estate, and believes that we will further enhance the Company’s growth in the specialized trade center and logistics projects, allow the parties to mutually benefit from the projects, and establish a long-term strategic partnership. It also helps share our business insight, informational resources on economic trends and market data, among others, with each other and seek investment opportunities which satisfy both parties’ investment strategies and criteria. ”


    Mr. Wei WANG, Managing Director of Ping An Real Estate Fund Management said, “HYDOO will be one of our valuable partners in creating a leading trade center and logistics platform in China. We endeavour to utilise integrated resources of Ping An and strive for their further business expansion. Leveraging the robust development of China’s trade center and logistics property market, we believe that HYDOO will be able to take advantage of the growth potential and further grow the business in trade center and logistics properties.”


    About Hydoo International Holding Limited

    Hydoo International Holding Limited is a leading developer and operator of integrated large-scale trade and logistics centers in China. HYDOO strategically focuses on the development of large-scale trade centers in third- and fourth-tier and selected second-tier cities in China. As of 30 June 2014, HYDOO had a total land bank of 8.1 million sq.m., and was simultaneously developing ten trade center projects in seven provinces and autonomous regions in China. HYDOO has replicated its successes in various regions across China, seeks to develop each trade center project into the largest integrated commercial complex in the local region for the wholesale and retail sale of a wide range of products including hardware, electric tools, building materials, furniture and home furnishings, home electronics, apparel and small goods.


    About Pingan Real Estate (Hong Kong) Company Limited

    Pingan Real Estate (HongKong) Company Limited is a private company wholly-owned by Ping An Real Estate, the real estate investment management arm of Ping An Insurance (Group) Company of China, Ltd. listed on the Stock Exchange (stock code: 2318) and Shanghai Stock Exchange (stock code: 601318). Ping An Real Estate primarily focuses on mixed-use development, senior housing communities, industrial and logistics properties through private equity and debt instruments in the PRC and selected overseas markets.