Press Releases
KWIH Closes a HK$4 Billion Revolving Credit and Term Loan Facility with Extension Options
(Hong Kong, 5 January 2024) K. Wah International Holdings Limited ("KWIH" or "the Group") (stock code: 00173) today announced that it has recently signed a HK$4 billion revolving credit and term loan facility (the “Facility”) with a total of 14 international and local banks. The Facility received an overwhelming response from the banks with oversubscription amid the challenging market. The Facility consists of two tranches in the amount of HK$4 billion with a tenor of three years and two one-year extension options has been granted to the Group.
Guaranteed by KWIH, the Facility is borrowed by its wholly-owned subsidiary, K. Wah Financial Services Limited. The proceeds of the Facility shall be applied by the Group for partially refinancing the drawn portion of the existing HK$4 billion club loan facility maturing in March 2024, with the balance to be applied for the Group’s general corporate funding requirements.
Original launched amount of the Facility was at HK$3 billion and the response from the banking community was strong with total commitments received well exceeding HK$4 billion. It is testimonial to the Group’s solid financial standing, prudent capital management and excellent banking relationships.
Paddy Lui, Executive Director of KWIH, said, “I would like to thank the banking community for their tremendous support to KWIH. The Group was pleased to see the robust response from the banking community, resulting in the upsize of the Facility from the initial target of HK$3 billion to HK$4 billion ultimately.”
“Despite the prevailing uncertainties in China and globally, economic and otherwise, the economic growth of the Mainland and Hong Kong continue to be resilient. We prudently believe the property markets in Hong Kong and the Mainland will be stabilised by the stimulus measures already introduced and to be introduced. The Group will continue to focus on developing quality projects in Hong Kong and tier-1 or 2 cities in the Mainland targeting upgraders and is well positioned to capture prudently any opportunities in Hong Kong and the Mainland. The Facility again shows the banking community’s strong vote of confidence in the Group’s development strategy and continuous growth,” Lui said.
The Facility is provided by the following banks:
Mandated Lead Arrangers and Bookrunners
Oversea-Chinese Banking Corporation Limited
The Bank of East Asia, Limited
DBS Bank Limited
The Hongkong and Shanghai Banking Corporation Limited
Bank of China (Hong Kong) Limited
Bank of Communications (Hong Kong) Limited
Mandated Lead Arrangers
Dah Sing Bank, Limited
Agricultural Bank of China Limited Hong Kong Branch
Bank of Shanghai (Hong Kong) Limited
China Construction Bank (Asia) Corporation Limited
China Everbright Bank Co., Limited
China Guangfa Bank Company Limited Hong Kong Branch
Tai Fung Bank Limited
Lead Arranger
Hang Seng Bank Limited
Facility Agent
The Hongkong and Shanghai Banking Corporation Limited