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SCMP Reporter

Rich Lord International, part-owned by Pearl Oriental Holdings, has instructed Nara Banking Corp to arrange a US$65 million two-year loan.

    The term loan is expected to pay a coupon of 200 basis points over the six month London inter-bank offered rate (Libor).

  Including arranging and underwriting fees, the deal pays an all-in return of 275 basis points to investors.

  Pearl Oriental owns 25 per cent of Rich Lord, whose other shareholders are China Construction Bank and Guangdong Venturetech Equipment Leasing Corp.

  Rich Lord owns the four-star Pearl Seaview Hotel in Yau Ma Tei district.

  The funds would be used to repay an existing loan, which charges an interest rate higher than the prime lending rate.

  A company spokesman said the new loan deal would mean a substantial saving in interest expense for Rich Lord. Pearl Oriental will guarantee $16.25 million - or 25 per cent - of the loan.

  In another fund-raising move, Ka Wah Bank is to issue a three-year $50 million floating rate certificates of deposit through Bayerische Landesbank Hong Kong and HSBC Markets.

  The issue is expected to pay an all-in return of about 59 basis points.

  The bank is 61.3 per cent-owned by Beijing-based China International Trust and Investment Corp.

  Hongkong Bank has also launched a HK$150 million fixed rate certificates of deposit issue through HSBC Markets.

  The issue will pay a coupon of 7.87 per cent and will expire in November 2003.



Hotel owner to raise US$65m