CDL: Announcement on Credit Rating Downgrade of Sincere Property RMB Bonds

19/02/2021

General Announcement::Credit Rating Downgrade of Sincere Property RMB Bonds

CITY DEVELOPMENTS LIMITED (Co. Reg. No. 196300316Z)

CREDIT RATING DOWNGRADE OF SINCERE PROPERTY RMB BONDS

The Board of Directors of City Developments Limited ("CDL") wishes to inform that the Group has been made aware that China Lianhe Credit Rating Co., Ltd. has downgraded the issuer and the bond credit rating from AA to AA- for the following five corporate bonds issued by 重 庆协信远创实业有限公司 ("Sincere Property"), a joint venture (JV) of the Group:

The above five corporate bonds of Sincere Property, totalling approximately RMB 3.035 billion, will mature in 2021. The bond issues were made prior to the Group's investment into Sincere Property in April 2020.

The credit rating downgrade has no impact on the Group's borrowings as Sincere Property is a JV of the Group and the Group is not committed to the obligations of these bonds.

As at 31 December 2020, the Group's total investment in Sincere Property stood at S$1.8 billion. The Group has not provided any further liquidity support or corporate guarantees to Sincere Property since.

As announced on21 January 2021,the Group stated that it has ring-fenced its current financial exposure to the investment in Sincere Property and will continue to strenuously protect its position.

The Group's unaudited financial results for the full year ended 31 December 2020 will be announced on 26 February 2021 (before trading).

By Order of the Board

Enid Ling Peek Fong Company Secretary

19 February 2021