CMHI Successfully Issued US$700 million of Fixed Coupon Guaranteed Notes
To Support the Development of its Comprehensive Ports Business

China Merchants Holdings (International) Co., Ltd. (¡°CMHI¡± or ¡°the Company¡±) is pleased to announce on 3 August 2015 the successful issue of US$700 million fixed-coupon guaranteed notes, consisting of two tranches including a 5-year tranche of US$200 million and a 10-year tranche of US$500 million, the proceeds of which will be used to support the capital needs for the development of the Company¡¯s comprehensive port business. The coupon rate of the 5-year and 10-year tranches are 3.50% and 4.75%, and will be due by 2020 and 2025, respectively.  These notes will be listed on the Hong Kong Stock Exchange.

Merrill Lynch was appointed as the sole global coordinator of the issue, who, together with China Merchants Securities, Deutsche Bank, DBS Bank, Mizuho Securities and United Overseas Bank, are the joint bookrunners and joint lead managers, while Industrial and Commercial Bank of China (Asia) Limited, ING Bank, Mitsubishi UFJ Securities and Natixis are the joint lead managers of the issue. The issue is rated BBB+ by Standard & Poor¡¯s and Baa1 by Moody¡¯s, with a stable outlook.

Mr. Li Jianhong, Chairman of the Board of Directors of CMHI, said, ¡°The Company¡¯s capital structure has been further enhanced since the issuance of the Mandatory Convertible Securities in June 2014, with net gearing ratio subsided to a relatively low level of 13.9% by the end of December 2014. Our financial ratios, even after the issuance of the US$700 million guaranteed notes, will still be at a healthy level, which is in line with the prudent financial policies the Company has always adhered to.¡±

As Mr. Li further put it, ¡°In light of the facilitation of ¡®One Belt-One Road¡¯ strategy by the Chinese government, together with the opportunities arising from the Stated-Owned Enterprises Reform, and from the establishment of Qianhai-Shekou Free Trade Zone in Western Shenzhen, all in all, the Company is presented with precious opportunities to further develop its comprehensive ports business. The Company will proactively seek to capitalize on these opportunities, while preparing ourselves financially, for the future upgrade and transformation of our ports operation.¡±

¡°In view of the anticipated interest hike of the US-Treasury market, the issuance of the USD guaranteed notes will help the Company to lower its interest cost, and in turn enhance the Company's profitability and derive better shareholders' return. The successful launching of the USD guaranteed notes also reflects the recognition and confidence of the international investors on the Company¡¯s future development,¡± Mr. Li added.

Mr. Li also emphasized,¡± China Merchants Group will provide its continuous support to the development of the comprehensive ports business of CMHI, as it has always been, and will also actively seek to realize synergies by coordinating across various business units, with an aim to help create core values, as well as to drive sustainable growth, of CMHI.¡±

 
 

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ICP 05068163