Jul. 29, 2010 (China Knowledge) - Shimao Property Holdings Ltd<0813> on Wednesday announced plans to issue US$500 million worth of preferential notes, which will expire in 2017, with an annual interest rate of 9.65%.

The Hong Kong-listed firm will obtain US$494 million in net amount from the issuance and will use the fund to repay loans and replenish working capital.

Morgan Stanley, HSBC Holdings Plc (Hong Kong)<0005> and Standard Chartered Plc<2888> have been appointed as the book runners.

The issuer reaped RMB 11.3 billion in un-audited contracted sales revenue in the first half of this year, reflecting a year-on-year decline of 13.9%, and its contracted sales area totaled 1.01 million square meters. The real estate developer targets around RMB 30 billion-sale revenue for 2010.

In earlier this month, Shimao Property Holdings announced plans to shelve the issuance plan by its subsidiary ShangHai ShiMao Co Ltd<600823> that planned to issue not more than 150 million shares.