DBS Bank has granted term loan facilities amounting to about S$74 million to Ascendas India Trust, a Singapore-listed business trust. Two subsidiaries of the trust acquired the said loan.
The facilities will carry a 10 percent interest rate every year and will mature in December 2015. These will fund the development of a multi-tenanted building in Chennai and the construction of a retail mall in Bangalore.
According to the property trust, up to this point, its existing debt and cash have financed the ongoing construction of these two projects.
Furthermore, Ascendas India Trust released two series of senior unsecured fixed rate notes for a three-year period amounting to S$60 million. Standard Chartered Bank and DBS Bank have arranged for the issuance of these notes, which comes under its multi-currency medium-term note programme worth S$500 million.
The net proceeds will be utilized to meet the working capital requirements as well as to finance the development of a multi-tenanted building situated in Bangalore’s International Tech Park.
Assuming there is no upward revaluation of properties, the issuance of notes together with the granted loan facilities are expected to raise the gearing level of the trust to about 20 percent, from 13 percent during the month of September.