The trustee-manager of CapitaLand India Trust CY6U (CLINT) has entered into a $50 million sustainability-linked term loan facility agreement with the Bank of East Asia, Singapore branch on Sept 24.
It was not specified in the announcement what the loan agreement would finance.
An event of default would occur under the facility agreement under two conditions. The first is if CapitaLand Investment does not own or ceases to own, directly or indirectly through its wholly-owned subsidiaries, at least 51% of the issued and paid-up capital of the management of CLINT.
The second is if CLINT is terminated pursuant to the provisions of the trust deed dated Dec 7, 2004, and or if CLINT’s manager ceases to be the trustee-manager of CLINT.
The release notes that should any trigger event occur and the manager of CLINT fails to pay the outstanding amount due and payable under the facility agreement, it may trigger cross defaults under other facilities, debt issues and borrowings of CLINT and or its subsidies.
The aggregate level of borrowings which are outstanding and that may be affected is approximately $1,660 million as at Sept 24.
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Units in CapitaLand India Trust closed 1 cent higher or 0.88% up at $1.14.
