-OCBC lends USD134m to Singapore's First REIT.
M2 EQUITYBITES-May 14, 2012--OCBC lends USD134m to Singapore's First REIT(C)2012 M2 COMMUNICATIONS http://www.m2.com
14 May 2012 - Oversea-Chinese Banking Corporation Limited (OCBC) has provided First Real Estate Investment Trust (REIT) with a SGD168m (USD134m/EUR104m) transferable term loan facility, the Singapore-based healthcare REIT said on Monday.
The bank has provided the facility, which has a tenor of four years, through its trustee, HSBC Institutional Trust Services (Singapore) Limited.
The trust will use around SGD50m of the facility, which will be available both in Singapore and US dollars, to refinance its outstanding loans with OCBC and the remaining SGD118m to fund any future purchases. As a result, the trust will have no short-term needs until 2015.
The facility will be secured by mortgage on the trust's existing property portfolio and new properties to be purchased under the facility.
Chief executive of Bowsprit Capital Corporation Limited, the trust's manager, Ronnie Tan, said the loan would enable the trust to take advantage of opportunities to expand its healthcare property portfolio.
OCBC will also lend a nominal amount of up to SGD100m as part of an interest rate derivative facility for interest hedging on the loan facility for a period of up to four years. This will help limit the trust's exposure to potential increases in interest rates. The grant of both facilities is subject to certain conditions, including the satisfactory completion of legal documentation.
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|Publication:||M2 EquityBites (EQB)|
|Date:||May 14, 2012|
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