ICBC Yangon Branch provides $15 million loan for Golden City Phase 2 Project

On April 4, 2016, ICBC Yangon Branch signed a $15 million USD loan agreement with Golden Land Real Estate Development Co. Ltd. (GLRE) for the Golden City Phase 2 Project. Golden Land Real Estate Development Co. Ltd. (GLRE) - a SPV incorporated in Myanmar 49% owned by Emerging Towns & Cities Singapore Ltd. The proceeds of the ICBC Facility is used for the development of Golden City Phase 2 Project and the interest rate is based on 6 months LIBOR plus a margin equals to 300 basis point. Under the ICBC Facility, GLRE will make repayment every six months, in tranches of US$10,000, US$90,000 and US$400,000, with the final repayment of US$14.5 million by 28 March 2018. An arrangement fee of US$0.8 million was also paid by GLRE to ICBC upon the drawndown of the ICBC Facility. GLRE has also separately entered into an agreement with Kanbawza Bank such that the latter will give a banker’s guarantee to ICBC for any default or non-payment for any amounts due to ICBC under the ICBC Facility. A further guarantee fee of US$0.3 million was paid to Kanbawza Bank for the issuance of such bank guarantee. The guarantee fees are accounted for as transaction costs. The Golden City project, a luxury mixed-use development with an estimated gross floor area of approximately 3.6 million square feet in the Yankin township of Yangon, Myanmar. It consists of 40 residential units, 1 retail unit, and 27 office units over a 70-tenure. The address is No. 3, Land Survey Block, Kanbe, Yankin Road, Yankin Township, Yangon, Myanmar.

Additional details

1. The all-in interest rate that applies to this loan (3.903%) was calculated by taking the average 6-month LIBOR rate in April 2016 (0.903%) — the year when the loan agreement was finalized — and adding a 3% margin.

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