CNQC International Enters into Subscription to Issue Medium Term Note at SG$100 Million Enhances Property Development Business in Singapore

CNQC International Holdings Limited ("CNQC International," "the Company," together with its subsidiaries, collectively referred to as "the Group”, stock code: 1240.HK), a leading property developer and contractor in Singapore, is pleased to announce that, together with the subsidiary guarantors and the joint lead managers, the Group entered into a subscription agreement to carry out the first drawdown under a programme to offer and issue the drawdown instruments in an aggregate nominal amount of SG$100 million. This agreement is an execution refer to the medium term note and perpetual securities programme, which was announced on 27 October 2017, under which it may from time to time offer and issue instruments of an aggregate principal amount of up to US$500 million (or its equivalent in other currencies).

This subscription agreement was signed by CNQC International, the subsidiary guarantors of the Group, and the joint lead managers, which are BOCI Asia Limited, DBS Bank Limited, and Shanghai Pudong Development Bank Co., Ltd. Singapore Branch. CNQC International will issue the medium term note of SG$100 million, with the coupon rate of 4.9%. The maturity date of this medium term note will be 7 November 2020. An application will be made by the Company to the SGX-ST for the listing of and permission to deal in the Drawdown Instruments and such permission will be granted when the drawdown instruments have been admitted to the Official List of the SGX-ST, which is expected to be on or about 8 November 2017.

Cheng Wing On Michael, the Chairman of CNQC International said: " Coinciding with the ‘Belt and Road’ policy, Chinese government support multinational companies to catch more business opportunities and explore new markets, as well as to improve the investment merge in Asia area. CNQC International has been deeply cultivated in Singapore property market and has entered into Hong Kong, Macau, Indonesia, Vietnam and other Southeast Asia countries successively. While expanding its strategic business layout and comprehensive strength, the Group is exploring diverse financing resources to optimize the financing channels mix and integrates resources to maximizing the usage of funds.”

“Singapore as one of the best investment value markets in Asia, its sales and development of condominium in the followings quarters recorded an optimistic prospect by investors. For the third quarter this year, the price index of condominium in Singapore recorded an increase of 0.7%, comparing to the second quarter this year. Meantime, the price index of condominium in central area, which the Shunfu Villa project located at, registered a sequential rise during the latest three quarters. The market considers the domestic collective sales as an indicator of property sales trend in Singapore and shares a positive view that the collective sales will maintain momentum in the future, especially the project in the prime location. The Shunfu Villa, which acquired by the Group this year, is one of the above mentioned collective sales in the city center and recognizes as one of the largest collective sales projects in Singapore. The project located in a prime geographic location with natural neighborhoods, comprehensive living facilities and schools. In the future, the Group will utilize the various channels of financing, expand diverse resources reserve, develop superior property projects, become the top property developer and contractor in Singapore and to perseveringly bring long-term investment return to business partners and shareholders.”