CTS secures US$225m loan

China Travel Services (Holdings) Hong Kong (CTSHK) says it has secured a syndicated transferable term loan worth US$225 million from 18 international and financial institutions. The company, which is the unlisted parent of red chip China Travel International Investment, says it will use about 30 per cent of the loan for re-financing and the remaining 70 per cent for general working capital. Thirty per cent of the loan will mature in three years and the remaining 70 per cent will mature in five years. The interest rate of the three-year term portion is at the London interbank offered rate (Libor) plus 115 basis points, while that of the five year-term portion is Libor plus 135 basis points. The loan was arranged by CEF Capital, the Hong Kong branch of China Construction Bank, Citic Ka Wah Bank, HSBC and Hang Seng Bank.