Skip to content
AidData logo

Overview

Bank of China (Malaysia) loans Prime Global Capital Group in Malaysia MYR 40 million for commercial property purchase in October 2014 (linked to Record ID#106701)

Commitments (Constant USD, 2023)$12,534,291
Commitment Year•2014Country of Activity•MalaysiaDirect Recipient Country of Incorporation•MalaysiaOverseas Jurisdiction•MalaysiaSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 31, 2014
Last repayment (originally scheduled)
Oct 28, 2024

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (Malaysia) Berhad

Receiving agencies

Private Sector

  • Prime Global Capital Group Sdn Bhd

Guarantors

Private Sector

  • Union Hub Technology Sdn Bhd

Collateral providers

Private Sector

  • Prime Global Capital Group Sdn Bhd

Loan description

Bank of China (Malaysia) loans Prime Global Capital Group in Malaysia MYR 40 million for commercial property purchase in October 2014

Grant element•7.8151%Interest rate (t₀)•7.6%Interest type•Variable Interest RateMaturity•10 years

Collateral

Rental income from tenants of the commercial property.

Narrative

Full Description

Project narrative

On August 19, 2014, the Bank of China Malaysia Bhd (BOCM) offered to lend Prime Global Capital Group (PGCG Holdings Sdn Bhd) 40,000,000 Malaysian Ringgits (MYR/RM) as a term loan for the purchase of a commercial property from Hong Leong Bank Bhd and MYR 15,000,000 in revolving credit for working capital for Le Apple Boutique Hotel (KLCC) Sdn Bhd. The property is a 15-story commercial office building and an annexed 2-storey podium block with a basement carpark at No. 160, Jalan Ampang, 50450 Kuala Lumpur. The maturity of the loan is 10 years with an interest rate of 1% of BOCM's daily base interest rate, to be repaid in monthly installments of MYR 476,898 for 120 months starting 1 month after full drawdown, or until fully repaid. The drawdown is to happen within 6 months of the offer. Late payments are to be repaid at 1% higher than than the normal interest rate. The loan and revolving credit both benefit from a personal guarantee by Wong Weng Kung, a director at PGCG, and a corporate guarantee by Union Hub Technology Sdn Bhd and are collateralized by the rental income from the tenants of the property. In a cross-default clause, BOCM reserves the right to withhold disbursements of both credit facilities or to litigation if any party defaulted in payment to BOCM that PGCG was a guarantor, joint-account holder, or other related party for. The offer was accepted on October 31, 2014.

Staff comments

1. AidData has estimated the all-in interest rate to be 7.6% by adding 1% to Bank of China Malaysia's daily base interest rate (as specified in Source ID #212151) in August 2014 (6.6%). Source 212151, the credit facilities agreement, can be accessed in its entirety via https://www.dropbox.com/scl/fi/j2j44uxxgdoeto4hmh990/sec.gov_Archives_edgar_data_1462047_000101968714004029_prime_8k-ex1001.htm.pdf?rlkey=iund9kdgiwr8mutqzapbjq2v5&st=2joo0vtc&dl=0 2. Source ID #221473 indicates that PGCG officially acquired the loan from Bank of China Malaysia in December 2014.