China Logistics Property Announces Issuance of US$100 Million Convertible Bonds Due 2025

Enhancing Financial Strength to Improve Business Performance HONG KONG, June 30, 2020 /PRNewswire/ — China Logistics Property Holdings Co., Ltd (“CNLP” or the “Company”, together with its subsidiaries, the “Group”; stock code: 1589), a leading provider of logistics facilities in China, today announced that it was entering into a Subscription Agreement with Bain Capital Credit for US£100 million convertible bonds (“CBs”). The proceeds from the bonds will be used for the repayment of existing indebtedness and other general corporate purposes.

This adds to the company’s already strong cash reserves and other financing alternatives, enabling the company to better allocate its financial resources and further develop its business. The initial conversion price is HK£3.19 per share, set with reference to the 20-day volume-weighted average price of CNLP shares immediately prior to the date of the Subscription Agreement. Based on the initial conversion price and assuming full conversion of the CBs, the CBs will be convertible into 242,962,382 conversion shares, representing approximately 7.51% of the issued share capital of the Company as at 29 June 2020 and approximately 6.99% of the issued share capital of the Company as enlarged by the issue of such Conversion Shares (assuming that there is no other change to the issued share capital of the Company).

Mr. LI Shifa, Chairman, CEO and President of CNLP, said: “The successful issuance of the CBs demonstrates that Bain Capital Credit and the capital market have utmost confidence in our business model and in the company’s ability to execute it. I anticipate that these proceeds will facilitate the growth of our business, enabling the development of new projects, which will accelerate the company’s shift towards an asset-light business model.

Moreover, given Bain Capital Credit’s strong global reputation and track record, we believe that Bain Capital Credit will further broaden the company’s network, bringing in more global investment opportunities. We are positive that in the long run, this issuance will form the foundation of a lasting, fruitful partnership between the two parties.” Mr. Kei Chua, Managing Director and Head of China and North Asia for Bain Capital Credit, said: “China’s logistics real estate industry is experiencing rapid growth driven by strong domestic consumption and a fast-growing e-commerce market.

CNLP is well positioned to build on its long history and expertise in China’s logistics sector to develop new projects. We are privileged to support the company’s future growth plans and look forward to establishing a strong partnership with CNLP.” The proposal is subject to the Independent Shareholders’ approval at an Extraordinary General Meeting.

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About China Logistics Property Holdings Co., Ltd. CNLP was one of the early entrants and pure-players in China’s logistics facilities market, with major external shareholders including RRJ Capital, JD.com and Sino-Ocean. Since 2003, the Group has participated in the development, operations and management of premium logistics facilities.

With 17 years’ experience, the Group has developed a highly effective and return driven business model. As of 31 December 2019, its prime logistics facilities portfolio reached 4.3 million sq.m., with 176 logistics facilities operating in 37 logistics parks, located in logistics hubs in 18 provinces and centrally administered municipalities. The Group’s extensive geographic reach and premium logistics facilities create a strong “network effect” that allows tenants to expand across its logistics facilities network as their businesses grow.

The Group is a constituent stock of the Shenzhen-Hong Kong Connect and a constituent stock of the Hang Seng Composite Index. About Bain Capital Credit Bain Capital Credit (www.baincapitalcredit.com) is a leading global credit specialist with approximately US£39.7 billion in assets under management.

Bain Capital Credit invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities. Our team of 310 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.

In Asia, Bain Capital Credit focuses on providing complete and bespoke financing solutions to businesses. Our dedicated global team affords us the ability to diligence the most complex situations and provide private capital to those companies. Bain Capital Credit is part of Bain Capital, a leading private multi-asset alternative investment firm with approximately £100 billion in assets under management.

Bain Capital creates lasting impact for investors, teams, businesses and the communities in which we live.

For further information about CNLP, please visit the Company’s website at: http://www.cnlpholdings.com/

For further information about Bain Capital, please visit www.baincapitalcredit.com

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