LH inked 1 billion baht offshore loan

Bangkok--Jul 9--Land & Houses LH has concluded a one billion baht offshore low cost, clean syndicated loan package with 1.5% in a recently signed agreement with financial arrangers of the deal in Singapore, said Adisorn Thananun- Narapool, LH Executive Vice President. President Anant Asvabhokin and Mr. Adisorn signed the loan agreement for 4000 million yen, about one billion baht, clean four-year's term loan at an interest rate of Yen LIBOR + 0.85 (around 1.5%) with Societe Generale Asia Limited, Hong Kong acting as Arranger and Byerische Landesbank Girozentrale, Singapore Branch and The Development Bank of Singapore, Ltd. and Korean French Banking Corp as Co-arrangers. Mr. Adisorn said thet this loan was the fourth clean loan, low cost financing the LH had raised from overseas sources. The first three were made in US Dollars. This latest funding had been in yen because of two considerations. The first was the phenomenon that dollars and yen currencies moves in opposite directions. The placement of debts in two currencies will counter balance currency exchange risk in any adverse currency fluctuation. The second consideration arose from the saving in withholding tax deduction, whereby Yen loan's withholding tax deduction was 0.5% less than dollars loan since Yen interest rate is 5% lower. Mr. Adisorn remarked that the four year's loan with favorable term reflected the confidence that LH enjoyed in overseas financial community, despite the downside real estate situation in the Thai market. The Yen loan would be disbursed in retiring the highcost outstanding baht loan by which LH's cost of fund would come down from 8% to 7.5% Mr. Adisorn said. End

• ข่าวSociete Generale
• ข่าวo:loc
• ข่าวen