OKH Global Ltd said that it has entered into a loan agreement on Friday with Haiyi Holdings Pte Ltd, the controlling shareholder of real estate company SingHaiyi Group Ltd, for a S$10 million loan.
The loan will be disbursed within five business days of the signing of the loan agreement and the execution of a personal guarantee by OKH executive chairman and chief executive Bon Ween Foong in favour of the lender to guarantee all payment obligations of the company under the loan agreement.
The loan will bear interest at a rate of 0.8 per cent per month, calculated on the basis of actual number of days elapsed and a month of 30 days. It is payable in full six months from disbursement.
The proceeds from the loan will be used for the group's working capital requirements and partial repayment of redeemable convertible preference shares or redeemable exchangeable preference shares, on the terms set out in the loan agreement, OKH said.
Haiyi will also subscribe for 500 million new shares representing 44.3 per cent of the issued and paid-up share capital of the company under a subscription agreement announced last month.
These pacts were inked with Haiyi following a drastic fall in OKH shares in March when part of the shareholdings that Mr Bon pledged to certain financial institutions were "forcibly sold" on the market.