Singapore-listed Ascendas India Trust said that two of its subsidiaries have obtained term loan facilities amounting to around S$74 million from DBS Bank.
The facilities will mature in December 2015 and carry an interest rate of 10 per cent a year. They will be used to fund the construction of a retail mall development in Bangalore and a multi-tenanted building development in Chennai.
The property trust said that up to this point, the ongoing construction of these two projects has been financed by its existing debt and cash.
In addition, Ascendas India trust also issued two series of three-year senior unsecured fixed rate notes totalling S$60 million. The notes come under its S$500 million multi-currency medium-term note programme, and were arranged by DBS Bank and Standard Chartered Bank.
The proceeds will be used to fully fund the development of a multi-tenanted building in the International Tech Park, Bangalore, as well as to meet working capital requirements.
The loan facilities coupled with the notes issuance are expected to raise the trust’s gearing level to around 20 per cent, from 13 per cent as of September, assuming no upward revaluation of its properties.
Source : Channel NewsAsia – 10 Nov 2009