EC World Reit releases 198.9 million yuan of margin deposit from escrow for loan repayment
Uma Devi
THE manager of EC World Reit on Sunday (Feb 12) said it has released a portion of its margin deposit – or an aggregate of roughly 198.9 million yuan (S$38.9 million) – from escrow, and utilised the amount to partially repay the outstanding mandatory repayment of its offshore and onshore bank loans.
About 140.2 million yuan was put towards the partial repayment of the real estate investment trust’s (Reit’s) existing offshore bank loans, while 58.6 million yuan was used for the partial repayment of existing onshore bank loans, the company said in a regulatory filing.
This arrangement would allow EC World Reit to save on interest payments which would otherwise be incurred on the outstanding loan amounts, the trust said.
After the release of funds, the Reit’s margin deposit as at Feb 11 stands at about 1.1 million yuan, which continues to be held in escrow.
The Reit said its sponsor and lenders have agreed for the portion of its margin deposit to be released for the partial repayment of loans.
The trust said it will make further announcements on the Singapore Exchange in the event of material developments that warrant disclosure.
Units of EC World Reit fell 3.2 per cent or S$0.015 to close at S$0.455 on Friday.
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