Yugen Kaisha JOF, a subsidiary of mainboard-listed Saizen REIT, has entered into an agreement for a S$15.7-million loan from Japan’s Mizuho Bank.
The loan, which has been fully disbursed, has a term of 10 years.
Under the terms, the asset manager of Saizen will act as a guarantor for the loan, and the property portfolio of Yugen will be pledged as security for the loan.
The proceeds will be used to fully repay a S$6.3-million short-term bridging loan that the Saizen unit has from Star Finance, and the balance will be used for working capital purposes.
Saizen said on Thursday its asset manager plans to explore further financing possibilities with Mizuho.
Source : Channel NewsAsia – 1 Oct 2009