SUCCESSFUL REFINANCING OF APPROXIMATELY 65% OF AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT") EXISTING SHORT TERM BORROWINGS INTO A 3 AND 5-YEARS ISLAMIC TERM LOAN
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | SUCCESSFUL REFINANCING OF APPROXIMATELY 65% OF AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT") EXISTING SHORT TERM BORROWINGS INTO A 3 AND 5-YEARS ISLAMIC TERM LOAN |
| Contents | The Board of Directors of Axis REIT Managers Berhad, the management company of Axis-REIT, is pleased to announce that Axis-REIT has accepted a RM170.4 million Islamic term loan (“Term Loan”) on a Club Deal arrangement jointly offered by CIMB Islamic Bank Berhad and Public Islamic Bank Berhad (“the Financiers”). The Term Loan has the following maturity tenures with principal bullet repayment at the end of the respective tenures: a) RM70.4 million for 3 years upon initial drawdown; and b) RM100.0 million for 5 years upon initial drawdown Proceeds from the Term Loan will be utilised to refinance part of Axis-REIT’s existing short term borrowings maturing progressively from now to 31 December 2009. The properties charged earlier for the short term borrowings will be discharged once the short term borrowings are being refinanced and thereafter, to be charged to the Financiers for the Term Loan, thus leaving Axis-REIT with the balance of 13 unencumbered properties in its portfolio. 50% of the Term Loan is on fixed rate basis whilst the balance 50% is on variable rate basis. To hedge against the fluctuation of interest rate on the variable rate portion of the Term Loan, Axis-REIT will enter into an Islamic Profit Rate Swap arrangement thereby taking advantage of the current favourable interest rate environment to lock-in rates over the tenure of the Term Loan. With the Term Loan in place, Axis-REIT will have successfully structured its long/ medium term borrowings to short term borrowings ratio to approximately 65:35 at an indicative blended all-in interest rate of 4.5% per annum; which is within the range of historical interest rate paid by Axis-REIT in the past for its short term borrowings. This announcement is dated 5 June 2009. |
Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 5 Jun 2009 |
| Category | General Announcement |
| Reference No | CCS-090605-2CE85 |
