BoC Macau agent for Shimao loan

By
Stephanie Lai

Bank of China Ltd., Macau Branch is the agent and lender for a term loan facility in the amount of US$89 million (551.7 million yuan or MOP710 million) requested by Chinese property developer Shimao Property Holdings Ltd., according to a company announcement filed with the Hong Kong Stock Exchange after trading hours on Wednesday.
The US$89 million term loan facility will be made available to the borrower – an indirectly wholly-owned subsidiary of Shimao called Peak Castle Assets Ltd. – for a term of 48 months from the date of the facility agreement reached on April 22, the filing said.
Together with Bank of China branches in Sydney, Malaysia and Manila, the Bank of China Ltd., Macau Branch is also the arranger and original lender for Shimao’s term loan facility.
Hui Wing Mau, chairman of Shimao, owns about 64.99 per cent of the issued share capital of the company.
Conditions apply If Mr. Hui and his family cease to be the single largest shareholder of Shimao, or cease to maintain at least 51 per cent beneficial shareholding interest in the company’s issued share capital, the commitments under the loan facility may be cancelled and all amounts outstanding under the loan facility may become immediately due and payable, the filing notes.
Also, if Mr. Hui Wing Mau ceases to be Shimao’s chairman and is not replaced by the company’s vice-president, Mr. Jason Hui Sai Tan, within 10 business days of cessation pf the post, the commitments under the loan facility may also be cancelled.
Shimao missed the property sales target of 80 billion yuan for last year as sales had slowed during the period, Hui said regarding the company’s annual results at the end of last month.
The company will cut prices to boost property sales this year and focus on urban projects in first and second-tier cities on the Mainland, and expects that the average price per square metre will not exceed 12,000 yuan, Mr. Hui said at the time. The value of the existing property stock of Shimao is about 20 billion yuan, the company’s vice-president noted.
SL.