The Board of China Aoyuan Property Group Limited announced that on January 4, 2017, the company and the subsidiary guarantors entered into the purchase agreement with AMTD, BofA Merrill Lynch, China Merchants Securities (HK), Deutsche Bank, Guotai Junan International, Haitong International, SC Lowy and UBS in connection with the issue of USD 250,000,000 6.35% senior notes due 2020, which will mature on January 11, 2020, unless earlier redeemed pursuant to the terms thereof. The offer price of the notes will be 100.0% of the principal amount of the notes. The estimated net proceeds of the notes issue, after deduction of the underwriting discount and other estimated expense payable in connection with this offering, will amount to approximately USD 244,500,000 and the company intends to use the net proceeds to refinance the Group's existing indebtedness and for general working capital. The notes will bear interest from and including January 11, 2017 at the rate of 6.35% per annum, payable semi-annually in arrears on January 11 and July 11 of each year, beginning 11 July 2017. The company intends to use the net proceeds of the notes to refinance the Group's existing indebtedness and for general working capital. The company may adjust the foregoing plan in response to changing market conditions and reallocate the use of proceeds. The notes may be redeemed, at any time prior to 11 January 2020, the company may at its option redeem the notes, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes plus the applicable premium as of, and accrued and unpaid interest, if any, to, the redemption date. At any time and from time to time prior to 11 January 2020, the company may redeem up to 35% of the aggregate principal amount of the notes at a redemption price of 106.35% of the principal amount of the notes, plus accrued and unpaid interest, if any, with the net cash proceeds from sales of certain kinds of its capital stock, subject to certain conditions. The company will give not less than 30 days' nor more than 60 days' notice of any redemption.