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Hyflux unit restructures 617m yuan loan for desalination plant in China
HYFLUX said its wholly-owned unit Tianjin Dagang Newspring Co Ltd (TDN) has restructured a 617 million yuan (S$121.3 million) Bank of China loan, extending its maturity date by three years to 2026 and adjusting the repayment schedule for lower annual repayments.
The loan is for TDN's 100,000 cubic metre per day seawater desalination plant in Dagang City, Tianjin Province, and is guaranteed by Hyflux.
The renegotiation is a part of Hyflux's ongoing efforts to restructure the group’s liabilities, with the new terms expected to ease pressure on TDN’s cash flow in the short to medium term.
Bank of China will also be provided with a pledge of the desalination plant, said Hyflux in a filing to the Singapore Exchange on Wednesday night.