The first-phase of 2011 Private Placement Note (“PPN”) issued by the ZGC Development Group was the first private bond specially for the construction projects of public rental housing for talents in China. On December 31, 2011, it was successfully issued on the interbank market. This phase of PPN has a total amount of 900 million yuan, the issuance period 5 years, the coupon rate 5.75% paid annually, with ICBC and CCB as its main underwriters and 8 financial institutions as its targeted investors, such ICBC，CCB，Bank of Beijing and so on.

Uniformly planned, constructed, distributed and managed in accordance with Opinions on the Construction of Public Rental Housing for Talents in Zhongguancun National Independent Innovation Demonstration Zone, Beijing talent public rental housing is a kind of security housing only for talents who are engaged in innovation and startup in the Zhongguancun National Independent Innovation Demonstration Zone.

Planning and building public rental housing for talents is a major measure for Beijing to accelerate the construction of “Zhongguancun Special Zone for Talents”, to cultivate and pool outstanding innovative talents, leading industrial talents in particular, and to meet the housing needs of talents in multiple ways.

The first-phase of 2011 PPN issued by ZGC Development Group was the first PPN specially for the construction projects of public rental housing for talents in China.  It is a special product directly connecting the construction projects of public rental housing for talents with the capital market.  It is also a new attempt of Beijing to make good use of the market-oriented, integrated operation platform to develop new financing methods for the construction projects of talent public rental housing.

The ZGC Development Group has made an innovative design and sufficient market promotion of the PPN for the construction projects of talent public rental housing.  The bond was recognized by the ICBC, CCB and other active investors in the inter-bank market, obtaining the initial investment from three large banks. All of this has significantly improved the brand value of “Zhong Guan Cun” and the market recognition of the construction projects of talent public rental housing.  

In 2012, the Group will continue to issue PPNs of public rental housing projects for talents based on the optimized bond design, actively promoting the construction of the “special innovation zone”, the “special talent zone”, the “special high-end zone” and the “special international zone” in the Zhongguancun National Independent Innovation Demonstration Zone.