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

Singapore investment company Temasek Holdings and its Malaysian counterpart Khazanah Nasional have signed S$5 billion worth of property development loans, according to a person familiar with the matter.

DBS Bank, Oversea-Chinese Banking Corp, United Overseas Bank and Malayan Banking lent S$850 million each, while Australia and New Zealand Banking Group, Sumitomo Mitsui Banking and Bank of Tokyo-Mitsubishi UFJ each pledged S$500 million, the person said, asking not to be identified because details are private. CIMB Group Holdings committed S$100 million.

Khazanah spokesman Mohd Asuki Abas confirmed a loan was signed with eight banks. Temasek spokeswoman Serena Khoo also said a loan was signed with the eight banks. Both declined 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 developments will include hotels, apartments, offices and shops in 5.4 million square feet of space in two main 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 said.

Banks that committed the most funds to the five-year facility will receive 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 said. Loan documents were signed on Wednesday, the person said.

The lending banks are also restricted from selling the loan to other banks in syndication because the terms stipulate the debt is not transferable, the person said. The facility pays a margin of about 90 basis points, another person familiar with the matter said.

Source : Today – 16 Mar 2012

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