The Board announced that on January 29, 2013, KWG Property Holdings Ltd, together with the subsidiary guarantors, entered into the purchase agreement with Citi, Goldman Sachs, HSBC, ICBC International, Standard Chartered Bank and UBS in connection with the notes issue. Citi, Goldman Sachs, HSBC, Standard Chartered Bank and UBS are the joint book runners and joint lead managers, and ICBC International is one of the joint lead managers, in respect of the offer and sale of the Notes. They are also the initial purchasers of the Notes.

Subject to certain conditions to completion, the company will issue the Notes in the aggregate principal amount of USD 300 million. The Notes will mature on February 5, 2020, unless earlier redeemed in accordance with the terms thereof. The offering price of the Notes will be 100% of the principal amount of the Notes.

The Notes will bear interest at a rate of 8.625% per annum, payable semi-annually in arrear on February 5 and August 5 of each year, commencing on August 5, 2013. The company intends to use the proceeds of the Notes Issue to refinance existing debt and to finance its existing and new projects.