Financing Proposal of Agile Property Holding Essay

2472 Words Feb 16th, 2016 10 Pages
Financing Proposal
WU Shizhi 1155068485

Company background
Property Holdings Ltd is a real estate owner and developer. The group is one of the largest property developers in China. It develops and sells residential properties. It also operates in hotel and commercial properties industry. Agile has land in Hainan, Shanghai, Nanjing, Changzhou, Chengdu, Xi’an, Chongqing, Shenyang, Tianjing, Guangzhou, Foshan, Zhongshan, Huizhou and Heyuan.

Ownership structure
62% stock shares of the company are held by Top Coast Investment Ltd whose major shore holder is the family of the founder of Agile. The second largest shareholder JP Morgan Chase & Co holds 4.38%. Dimensional Fund Advisors Ltd and Blackrock hold 1.18% and 1.16% shares,
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Agile went public at the end of 2005. After that Agile issued several bond denominated in US dollar. In 2006, it made a follow-on offering. In 2014, it made a rights issue. In the recent two years, Agile began issuing domestic bond in mainland China. The details of the deals since Agile’s initial public offering are listed below.

Instrument | Issue Date | Terms | Reasons for tapping the markets | Initial Public Offering | 12/15/2005 | | Issue Size | 1.1bn shares | | The Group proposes to use the proceed to acquire land and property projects to build up the land bank of the Group. | | | | Currency | HKD | | | | | | Price | HKD 3.30 | | | | | | Total Proceeds | HKD 3.6bn | | | | | | Market | Hong Kong equity market | | | | | | | Straight Bond | 9/15/2006 | | Issue Size | USD 400mn | | The bond can supplement the Group’s funding for its expansion. It will improve the cash flow requirements and debt maturity profile. | | | | Currency | USD | | | | | | Coupon | 9% | | | | | | Tenor | 7 | | | | | | Maturity Type | Callable | | | | | | | Follow-On Offering | 11/13/2006 | | Placing Shares |

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