EC World REIT has entered into a China on-shore facility agreement with various banks, coordinated by the Hangzhou branches of DBS Bank (China) and UOB (China), as lenders of up to 1.095 billion yuan (S$215.72 million or US$159.46 million), the REIT said in a filing to SGX Friday.
The agreement is for two loan facilities of 1.018 billion yuan and 77 million yuan, the filing said.
The loans were via EC World REIT’s wholly owned subsidiaries Hangzhou Chongxian Port Investment, Hangzhou Bei Gang Logistics, Zhejiang Hengde Sangpu Logistics, and Zhejiang Fuzhou E-Commerce, the filing said.
In addition, ECW Treasure, another wholly owed subsidiary of EC World REIT, and Zhenjiang Fuzhou E-Commerce, which the REIT plans to acquire, entered into an offshore facility agreement, the filing said.
That agreement is with various banks, coordinated by DBS Bank and UOB, for a total of up to S$424.5 million, including a multicurrency loan facility of up to S$355 million, a Singapore dollar term loan facility of up to S$22.5 million, and a multicurrency term loan facility of up to S$47 million, the filing said.
The 77 million yuan onshore facility has a term of 10 years, while the other facilities are for around three years, the filing said.
The loans will be used to refinance all of EC World REIT’s existing onshore and offshore term loans due in 2019, partially fund the proposed acquisition of Fuzhou E-commerce, and finance the REIT’s working capital and other general corporate purposes, it said.
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