K. Wah International secures HK$1.47bn syndicated loan

Part of the loan to be used for refinancing, while the remaining will serve as general working capital to boost its financial efficiency.

K. Wah International Holdings Limited (“KWIH”) on Wednesday announced the closing of a HK$1,470 million term and revolving credit facilities (“Syndicated Loan”) with a consortium of nine international and local banks.

On the back of KWIH’s excellent reputation, the Syndicated Loan received oversubscription at the general syndication stage and the amount was increased from HK$900 million to HK$1,470 million.

Arranged by The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong) Limited and Hang Seng Bank Limited, the Syndicated Loan comprises two tranches - a 3-year HK$735 million term loan and a 3-year HK$735 million revolving loan, which carry an interest rate of HIBOR plus +1.48%. Part of the Syndicated Loan will be used for refinancing, while the remaining will serve as general working capital, enhancing the Group’s financial efficiency.

Ms Paddy Lui, Executive Director of KWIH, said that the Group is very pleased that the loan arrangement has come to a close with overwhelming response. “We are delighted to have secured this loan facility with oversubscription amid credit tightening and rising interest rates. This remarkable achievement shows not only a strong vote of confidence from the banking community, but also a demonstration of our good reputation and business potentials,” said Ms Lui, adding that the Group’s latest project in Shanghai, The Legend of Westwood III, at a price level of ¥37,000 per sqm, has received keen market response, making it a talk of the town despite the austerity measures.

More prime projects in the pipeline, including Chantilly and Marinella in Hong Kong, as well as The Palace in Shanghai, are also poised to delight the market with exceptional location, quality and design, according to a K. Wah report.

Continuing to focus on its core business of property development, Ms Lui said that the Group remains cautiously optimistic about the long term prospects of Hong Kong and China property markets, and are confident that its projects will fulfill the rising demand for high quality residences. “With the new facilities added to our already solid financial position, the Group is at good stead to grasp investment opportunities in future,” Ms Lui concluded.