K. Wah Borrows HK$1.8 Billion for Land Purchases

K. Wah International Holdings Ltd., a Hong Kong real-estate developer and owner of a stake in a Macau casino operator, said today it had signed a HK$1.8 billion ($231 million) loan to fund land purchases in Hong Kong and China.

Fourteen banks participated in the unsecured syndicated loan to unit K. Wah Stones (Holdings), K. Wah International said in a faxed statement. The loan includes a $900 million revolving loan maturing in three years and a $900 million five-year loan that is a revolving loan for three years and then is a term loan.

K. Wah has been seeking money to replenish its supply of building sites. In June, the company said it was in talks to sell its 19 percent stake in Galaxy Entertainment Group Ltd. (27), which has one of four full casino licenses in Macau, the only city in China were casino gambling is legal.

The company will pay interest of 0.55 percentage points more than Hong Kong interbank offered rate, or Hibor, for the three- year portion of the loan and 0.58 percentage points more than Hibor for the five-year portion, the statement said.

Bank of China (Hong Kong) Ltd., Hang Seng Bank Ltd. (11), Standard Chartered Bank (Hong Kong) Ltd. and Bank of Communications Co. are ``coordinating arrangers'' on the loan, the statement said. Wing Lung Bank Ltd., China Construction Bank Corp. (939) and Shanghai Commercial Bank Ltd. are ``co-arrangers.''

Bank of East Asia, Wing Hang Bank Ltd (302), Liu Chong Hing Bank Ltd. (1111), Maybank, Mizuho Corporate Bank Ltd., Nanyang Commercial Bank Ltd. and Public Bank (Hong Kong) Ltd. are ``senior managers'' on the loan, the statement said.

To contact the reporter on this story: Joshua Fellman in Hong Kong at jfellman@bloomberg.net

To contact the editor responsible for this story: Bruce grant at bruceg@bloomberg.net

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