KUALA LUMPUR, 21 - Despite the recent turmoil in the financial markets caused by the current global market downturn and the massive outbreak of COVID-19, Country Garden Malaysia successfully issued three sukuk bonds worth a total of RM495 million in March 2020 with a maximum maturity of seven years. This successful offering fully demonstrates the long-term confidence of the Malaysian capital market in Country Garden Group and its business in Malaysia. RAM, a major local rating company, maintained its Aa3 rating and stable outlook on the CGRE Sukuk programme in September 2019.
Malaysia is now one of the world's largest markets for Islamic finance. The Malaysian government has been encouraging and supporting the development of Islamic financing in recent years with a view to becoming a global Islamic financing center. Sukuk, or Islamic bond, is similar to bonds in the traditional financial world and is a form of financing that conforms to the Islamic law of Syariah. Sukuk bonds have grown rapidly since the 2000s, with Malaysia issuing the world's first sukuk bond in 2000.
Country Garden Malaysia set up its sukuk programme in 2015, the first overseas issue of a RMING-denominated sukuk by a Chinese company. The bond was awarded The "AAA Islamic Finance Award" by The Asset and The "Market Pioneer Award" by RAM in 2016 respectively.
Malaysia is a key overseas region for Country Garden Group's investment. Currently, there are 5 open projects in Malaysia. Two of the projects are in the Greater Kuala Lumpur area and three are in Johor Hills.
Diamond City in Selangor is Malaysia's first land-based residence with Spanish architecture, close to the Malaysian campus of the University of Nottingham, one of Britain's top universities. The main products are single-family, semi-detached and townhouse. At present, 6 phases have been completed and delivered to the building, and the remaining 3 phases are under development. The new Bin Hu City project, which will open in 2019, is located in Kuala Lumpur and is jointly developed with well-known local developers. Despite the market downturn, Bin Hu City has also achieved encouraging sales.
Country Garden Golden Bay project, located in Johor Sunsan downtown area, was completed in 2017. The ground floor shopping mall, "Country Garden Time" -- a Country Garden Group's own brand, is also the first shopping mall to be put into operation overseas. It will be officially opened in 2019. The Central Park project is another high-rise house project in Xinshan, which is aimed at the local client market. The first phase of the project has been completed and handed over.
As a strategic overseas project of Country Garden Group, Forest City is located in the Iskandar Special Economic Zone in Johor, Malaysia, across the water from Singapore. Forest City is a long-term sustainable development project. At present, the basic development and construction of the city has begun to take shape. It is focusing on the industrial development of the region, actively carrying out related work of urban operation, and striving to transform itself into the role of urban operator. Forest City focuses on exploring the way of sustainable development of the city, creating greater economic vitality for the region, enhancing regional value and introducing industries to create a stable and healthy development ecology for the city. This year, under the explicit request of the local Malaysian government, we will continue to increase industrial investment and promote industrial development. In addition, the cooperation with education and scientific research institutions will continue to increase. It is believed that the large-scale introduction of these high-tech and scientific research institutes will bring sustainable development potential energy to Forest City.
Currently, Forest City has built and operated two hotels, a commercial street, a water park, the Garter St. Mary's American International School, a building industrial IBS base and two 18-hole golf courses. The IBS base has been included in the Malaysian Book of Records as the largest automation plant in Malaysia. IBS enables technology and skills from different countries to be transferred to the benefit of Malaysia.
Since its development, Forest City has been awarded numerous awards and has actively fulfilled its corporate social responsibilities. In 2019, former Malaysian Prime Minister Mahathir Mohamad presented Forest City with the "Social Responsibility Contribution Award". In 2020, Forest City was awarded the National Community Contribution Award for Strategic Friendship and Cooperation. The two awards are in recognition of Forest City's ongoing efforts to improve the lives of local people in support of the government's national community housing policy.
Country Garden Malaysia has strong cash flow, reasonable debt structure and good sales momentum. Country Garden Group's financial performance was also very good, according to its 2019 earnings announcement. By the end of 2019, the Group, together with its joint ventures and associates, has achieved a total sales value of 552.2 billion RMB in equity contracts, with a year-on-year growth of 10.03%. The Group's total revenue was about RMB 485.91 billion, up 28.2% year on year; Core net profit attributable to shareholders was about 40.12 billion RMB, up 17.6% year on year; The Group's available cash balance reached a record high of RMB 268.35 billion. Country Garden Group will continue to invest in Malaysia in the future.
