Hyflux renegotiates 617 million yuan loan facility with Bank of China

Bank of China branch in Singapore’s Raffles Place area; taken October 2018.Bank of China branch in Singapore’s Raffles Place area; taken October 2018.

Hyflux said Wednesday it renegotiated a 617 million yuan (S$121.32 million or US$89.68 million) loan facility agreement between its wholly owned subsidiary, Tianjin Dagang Newspring, and Bank of China’s Tianjin Dagang branch.

Under the terms of the new agreement, the Tianjin Dagang loan has been extended by an additional three years to 2026, with an adjusted repayment schedule for lower annual payments, Hyflux said in a filing to SGX.

That’s expected to ease pressure on Tianjin Dagang Newspring’s cash flow over the short to medium term, Hyflux said.

In addition, Bank of China will also be given a pledge of the TJDG Plant, which is owned by Tianjin Dagang Newspring, the filing said.

The negotiations were part of Hyflux’s ongoing efforts to restructure its liabilities, the filing said.

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