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Press Releases

K. Wah International Closes HK$3,300 Million 5-Year Term Loan and 3-Year Revolving Credit Facility

16 Sep 2013

(Hong Kong-16 September 2013)-K. Wah International Holdings Limited (“K. Wah International” or the “Group”) (stock code: 0173) today announced the closing of a HK$3,300 million 5-year term loan and 3-year revolving credit facility (the “Facility”) with a consortium of 14 prime international and local banks. In recognition of this milestone, the Group held a ceremony with the presence of Paddy Lui and Alexander Lui, Executive Director and Herbert Hui, Chief Financial Officer of K. Wah International, along with representatives from participating banks and other professional parties.

Guaranteed by K. Wah International, the Facility is borrowed by its wholly-owned subsidiary K. Wah Financial Services Limited. On the back of the strong demand from banking institutions, the Group elected to raise the Facility amount to HK$3,300 million from an initial target of HK$2,500 million.

The Facility, arranged by Bank of China (Hong Kong) Limited, Hang Seng Bank Limited and The Hongkong and Shanghai Banking Corporation Limited, carries interest rates of HIBOR + 1.75% on the 5-year tranche and HIBOR + 1.25% p.a. on the 3-year tranche

Paddy Lui, Executive Director of K. Wah International, said that the Group is pleased with the overwhelming support received from the banking community, resulting in the upsize of the Facility.

Paddy Lui, Executive Director of K. Wah International, delivered an opening remark at the closing ceremony of the Group’s HK$3,300 million syndicated loan

"The positive response demonstrates a strong vote of confidence in our Group. This is the first 5-year facility secured by us, further extending our debt maturity profile. We believe the Facility will also enhance the Group’s financial flexibility and funding capability, allowing for long-term sustainable development.” Lui said.

With respect to the usage of the loan, Lui commented, “The Group always strives to provide quality, innovative and competitive products while concurrently seek to accelerate its project development cycle to increase asset turnover. The Facility is a timely arrangement that will go towards refinancing a maturing facility, and provide additional financial resources to capture high-potential investment opportunities and provide general working capital.”

Paddy Lui (right 4th of the front row), Alexander Lui (right 5th of the front row), Executive Director of K. Wah International; Herbert Hui (right 2nd of the back row), Chief Financial Officer of K. Wah International and other representatives of participating banks and other professional parties

Currently, the Group has nearly 20 projects in Hong Kong and Mainland China, half of which are ready for launch. The planning for the five new land parcels acquired in 2012 is also well underway and the projects are expected to go on the market in the next two to three years. Looking ahead, the Group will continue to replenish its land bank in a disciplined manner and expand its investment property portfolio to generate higher recurring income.

"With a strong financial position and clear direction forward, we are confident in our ability to capitalize on the opportunities ahead to enhance shareholder value,” added Lui.