Cheung So Wan and Wong Siu Yuk, should
remain the largest shareholders owning at
least 40% combined of the company and be
able to appoint or nominate the majority
of Kam Hing International’s board of
directors.
Proceeds from the borrowing will
refinance a HK$1bn 3.5-year term loan
signed in August 2017, and also fund
working capital and capital expenditure.
Bank of China (Hong Kong), China
Construction Bank (Asia), Hang Seng Bank,
HSBC, MUFG and Standard Chartered (Hong
Kong) were the lenders on the 2017 loan,
according to Refinitiv LPC data.
The 2017 loan refinanced a self-arranged
HK$1bn 3.5-year club loan from seven
banks completed in August 2015. The top-
level all-in was 312bp based on a margin
of 250bp over Hibor and an average life of
2.75 years.
Kam Hing International has two factories
in China and one in Cambodia. It is also
planning to build a new production plant
in Vietnam.
› CHINASOFT INTL LAUNCHES LOANHong Kong-listed CHINASOFT INTERNATIONAL has
launched a HK$1bn three-year term loan.
Standard Chartered (Hong Kong) is the
mandated lead arranger, bookrunner and
facility agent of the financing, which pays
an interest margin of 190bp over Hibor and
has an average life of 2.75 years.
Banks have been invited to join as MLAs
with tickets of HK$250m or more for a top-
level all-in pricing of 225bp based on an
upfront fee of 96.25bp. Lead arrangers earn
an all-in of 218bp through a fee of 77bp.
A site visit to Xi’an will be held on
August 26 and 27. The commitment
deadline is September 20.
The borrower’s core offshore subsidiaries
will provide guarantees. Funds are for
general corporate purposes.
The company’s last outing in the loan
markets was through a US$100m three-
year amortising facility in October 2013.
Mega International Commercial Bank
was the MLAB and Deutsche Bank wasthe coordinator of the term loan, which
attracted 10 other banks. The interest
margin was 295bp over Libor and the top-
level fee was 60bp.
Around 18 months later, the loan went
into a technical default following the
exit of Hony Capital, which was one of
its major shareholders at the time. As a
result, Chinasoft entered into discussions
with lenders over the breach of one of the
covenants that stipulated that Hony should
own at least 12% of Chinasoft or remain its
largest shareholder.
Chinasoft chairman and CEO Chen
Yuhong was the largest shareholder in the
company with an 18.09% beneficial stake
as of December 31 2018, according to the
company’s 2018 annual report.
Chinasoft is a privately owned provider
of information technology services such
as software, and training, outsourcing and
cloud computing services. It counts Huawei
Technologies, Tencent Holdings, HSBC, Ping
An Insurance (Group) Co of China, General
Electric and Microsoft among its customers.Goldin woos lenders with bridge takeout
Loans Borrower returns for larger deal after earlier attemptsDeveloper Goldin Financial Holdings is
sounding the market for a HK$7.657bn
(US$980m) four-year loan to refinance a
bridge facility that financed its purchase of
a land parcel at Hong Kong’s former Kai Tak
airport.
Industrial and Commercial Bank of China
(Asia) is the coordinator of the loan, which
will also fund construction costs.
The bridge loan, which matures on
September 10, has around HK$3.56bn
outstanding.
The borrower is RICH FAST INTERNATIONAL,
in which Goldin Financial owns a 60%
stake and the latter’s chairman Pan Sutong
holds the remainder. Goldin Financial is the
guarantor.
The latest loan follows developments
at Goldin Financial that have put share
purchase and swap agreements with Pan and
its fundraising exercises in the spotlight.
Goldin Financial is seeking approval
from shareholders at a special general
meeting to be held on August 23 to buy the
remaining 40% in Rich Fast from Pan for
about HK$2.16bn, according to a July 17 stockexchange filing. Goldin Financial had struck
that agreement in mid-April.
This agreement follows a share-swap
deal Goldin Financial and Pan struck in April
last year. Under that agreement, Goldin
Financial agreed to buy Pan’s 40% indirect
stake in Smart Edge in exchange for 60%
stakes apiece in Rich Region Holdings and
Gold Topmont. Smart Edge, Rich Region and
Gold Topmont are all subsidiaries of Goldin
Financial.
The status of that share-swap agreement
is unclear. In November, Goldin Financial had
requested lenders to consent to the transfer
of the 60% stake in Gold Topmont to Pan
and the release of its corporate guarantee for
a HK$7.191bn four-year loan signed in May- It had also sought for the creation of a
second charge over Gold Topmont’s shares,
which serve as security for the loan.
It has now emerged that ICBC (Asia) is
a major lender on that loan after having
bought portions of the same in the secondary
market from other lenders in the past few
months. Sources familiar with the situation
said the consent exercise and release of the
corporate guarantee are a formality now
that ICBC and other banks in favour of those
exercises make up the majority lenders on
the loan.
Meanwhile, Rich Fast will be developing
land lot number 6591 in Kai Tak, a 9,708
square metre site designated for residential
purposes that it successfully bid for in
November for about HK$8.9bn.
That is in contrast to its approach for
a commercial plot in Kai Tak, known
as land lot number 6546. On June 11,
Goldin Financial reneged on its successful
bid of about HK$11.1bn for the site and
foreited the HK$25m deposit citing “social
contradiction and economic instability in
Hong Kong”.
Goldin Financial had also attempted
to raise two loans – a HK$3.4bn one-year
mezzanine financing in March after putting
on hold a larger HK$6.8bn senior secured
term loan launched in January. It is not clear
if Goldin Financial has managed to raise
either of the loans for which Deutsche Bank
was the lead.
CHIEN MI WONG, APPLE LI, APPLE LAM