Leading Spirit (Holdings), which markets motorcycles and assembles television sets, has signed a US$38 million transferable syndicated loan, largely to finance expansion of its mainland production facilities.
The loan, arranged by Bankers Trust, was increased from $36 million after strong response from the nine underwriting banks.
Interest on it will be charged at the London interbank offered rate (Libor) plus 1.5 per cent. Conditions allow Leading Spirit to extend the term by one year in July 1999.
Chairman Wong Shi-ling yesterday said about half the funds would be allocated to its production base in Jiangmen, where capacity was expected to reach 2.5 million televisions by next year.
About $12 million would be spent to increase the number of its flagship specialty stores in China from 200 to 500.
Part also would be used to repay debts, with the balance to be used as working capital.
