Bloomberg News

Temasek, Khazanah Said to Sign S$5 Billion of Loans

March 15, 2012

(Corrects Khazanah company comment in third paragraph to reflect spokesman didn’t confirm loan amount.)

Temasek Holdings Pte (TMSK) and Khazanah Nasional Bhd., the state-owned investment companies of Singapore and Malaysia, signed S$5 billion ($3.9 billion) of property development loans, according to a person familiar with the matter.

DBS Bank Ltd., Oversea-Chinese Banking Corp., United Overseas Bank Ltd. and Malayan Banking Bhd. lent S$850 million each, while Australia & New Zealand Banking Group Ltd., Sumitomo Mitsui Banking Corp. and Bank of Tokyo-Mitsubishi UFJ Ltd. each pledged S$500 million, the person said, asking not to be identified because details are private. CIMB Group Holdings Bhd. committed S$100 million, the person said.

Mohd Asuki Abas, a Khazanah spokesman, confirmed a loan was signed with eight banks. Serena Khoo, a spokeswoman for Temasek, also said a loan was signed with the eight banks, declining to confirm the amount.

Khazanah and Temasek said in June they would jointly develop about $9.8 billion of projects in southern Malaysia and Singapore. About S$11 billion of Singapore developments will include hotels, apartments, offices and shops in 501,020 square meters (5.4 million square feet) of space in two main areas of the city’s downtown. The 3 billion ringgit ($981 million) of projects in Malaysia’s Iskandar region will have homes, retail space and “wellness-related offerings,” the companies said.

Banks that committed the most funds will receive a so- called all-in fee of 112 basis points more than benchmark rates, while those at the next level are being paid an all-in fee of 110 basis points, the person said. Loan documents were signed yesterday, the person said.

To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net

To contact the editor responsible for this story: Lars Klemming at lklemming@bloomberg.net


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