Bank of China (Malaysia) extends Prime Global Capital Group in Malaysia MYR 15,000,000 revolving credit facility for Le Apple Boutique Hotel operating costs, October 2014 (linked to Record ID #106680)

Project narrative

On August 19, 2014, the Bank of China Malaysia Bhd 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, to operate at the property. The loan for purchase of the property is captured in Record ID #106680. Drawdowns (or rollovers of previous drawdowns) under the revolving credit facility are repayable on demand or at rollover options of 1, 3, 6, and 12 months, and carry an interest rate of 1.5% above daily cost of funds (COF). The facility has a 1% per year charge on the unused portion of the revolving credit. In the case of a late payment, the penalty interest rate is 1% above the ordinary interest rate. Drawdowns are only allowed after full disbursement of the term loan captured in Record ID #106680. 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. Furthermore they 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 for which PGCG was a guarantor, joint-account holder, or other related party. The offer was accepted on October 31, 2014.