Treasury Building Refinance

RNS Number : 7945W

China Real Estate Opportunities PLC

04 August 2009

 



4 August 2009

China Real Estate Opportunities plc

Treasury Building Refinance

China Real Estate Opportunities plc ('CREO' or the 'Company') is pleased to announce that terms have been agreed and credit approval received for a multi-currency five year loan facility equivalent to ₤26.6 million (based on current exchange rates) with the Industrial and Commercial Bank of China (ICBC). 

This facility will refinance the existing €18.8 million and RMB97 million loan CREO has with Credit Suisse in regard to the Treasury Building Shanghai which expires in March 2010. It is expected that this transaction will be completed by October 2009. Under the approved terms, CREO will benefit from approximately ₤2 million of increased liquidity, subject to the exchange rates prevailing at the date of the refinance, as the principal amount of the ICBC facility exceeds the existing Credit Suisse loan. In addition, the interest cost on this loan facility will be reduced by approximately ₤200,000 per annum, representing a 15% saving, based on the current 3 year London Interbank Offer Rate (LIBOR), when compared to the terms of the current loan.

Ray Horney, CREO Chairman commented, 'I am most encouraged that credit approval has been received for the refinancing of the Treasury Building well ahead of the expiry of the current loan, as this provides confidence that progress can be made in relation to CREO's later refinancings.

The Company is developing strong relationships with Chinese banks and the Company's ability to secure additional funding and to extend the term of the debt facility further demonstrates the high quality, resilient nature of the Company's assets'

Contact:

CREO

Ray Horney, Chairman

Tel: + 44 (0) 1273 775 225 

Sarah Moriarty, Investor Relations

Tel: + 353 1 618 9455

Matrix Corporate Capital LLP

Paul Fincham, Rob Naylor

Tel: + 44 (0) 20 3206 7000

Davy

Des Carville

Tel: [phone]

Bankside Consultants 

Simon Rothschild, Oliver Winters 

Tel: [phone]

Murray Consultants 

Ed Micheau

Tel: + 353 1 498 0300

 

END

 

 

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