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Temasek, Khazanah ‘sign S$5b in property development loans’

June 11th, 2012 · No Comments

Singapore investment company Temasek Holdings and its Malaysian equivalent Khazanah Nasional have already signed S$5 billion value of property development loans. This revelation was uttered by a reliable person .

DBS Bank, Oversea-Chinese Banking Corp, United Overseas Bank and Malayan Banking loaned S$850 million each, while Australia and New Zealand Banking Group, Sumitomo Mitsui Banking and Bank of Tokyo-Mitsubishi UFJ each had promised S$500 million, the reliable source is requesting to remain anonymous since details are private. CIMB Group Holdings committed S$100 million.

Khazanah spokesman Mohd Asuki Abas confirmed that a loan was actually  signed with eight banks. Even Temasek spokeswoman Serena Khoo concur that a loan was really sign with the eight banks. Both parties beg off to confirm the loan amount.

 Khazanah and Temasek said in June they would jointly develop about US$9.8 billion (S$12.4 billion) of projects in southern Malaysia and Singapore. About S$11 billion of Singapore property developments will consist of hotels, apartments, offices and shops in 5.4 million square feet of space in two major areas of the city’s downtown.

The RM3 billion (S$1.24 billion) of projects in Malaysia’s Iskandar region will have homes, retail space and “wellness-related offerings”, the companies further said.

Banks situated in Singapore that committed the most funds to the five-year facility will obtain a so-called all-in fee of 112 basis points more than benchmark rates, while those at the next level are being paid an all-in fee of 110 basis points, the person further said. Loan documents were signed on Wednesday, the person further exposed.

The lending banks are also constrained from selling the loan to other banks in syndication for the simple reason that the terms stipulate therein provides that the debt is not transferable, the reliable source again said. The facility pays a margin of about 90 basis points, another person familiar with the matter said.




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