On January 22, 2013, Longfor Properties Co., Ltd. and the Subsidiary Guarantors entered into the purchase agreement with Citi, HSBC, Morgan Stanley and Standard Chartered Bank, in connection with the issue of $500,000,000 6.75% senior notes due 2023. The estimated net proceeds of the notes issue, after deduction of the underwriting discounts and commission and other estimated expenses, will amount to approximately $495.9 million. The company expects that a substantial portion of the net proceeds will be used for refinancing, and the remainder for general corporate purpose.

The indebtedness so refinanced may include loans that were extended to the Group from one or more of the joint book runners or their affiliates thereof. The company may adjust its development plans in response to changing market conditions and therefore reallocate the use of the proceeds.