CAI Corp — Capital/Financing Update 1999

Oct 11, 1999

Listed Company Information

HARBOUR CENTRE <0051> - Announcement The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HARBOUR CENTRE DEVELOPMENT LIMITED Announcement In accordance with the provisions of Practice Note 19 of the Listing Rules, the particulars relating to the provision of financial assistance by Harbour Centre Development Limited (the "Company") and/or its subsidiaries (together, the "Group") to wholly-owned subsidiaries (the "Borrowers") of an associated company of the Company as named or described below are disclosed in this announcement. The Borrowers are wholly-owned subsidiaries of a joint venture company ("JV Company") which is engaged in a property project. The JV Company is also an associated company of the Company's parent company, namely, The Wharf (Holdings) Limited ("Wharf"), as well as a non wholly-owned subsidiary of the controlling shareholder of Wharf, namely, Wheelock and Company Limited ("Wheelock"). Wheelock, through its wholly-owned and non wholly-owned subsidiaries, and Wharf, through its wholly-owned subsidiary, respectively hold direct equity interests in the JV Company. The Group together with all other joint venture partners of the JV Company are responsible for the funding requirements of the Borrowers in proportion to their respective shareholdings in the JV Company on the same terms and conditions. LENDERS : The Company and/or its wholly-owned subsidiaries. BORROWERS : Wholly-owned subsidiaries of Hopfield Holdings Limited, i.e. the JV Company. The JV Company, which is 20% effectively owned by the Group, is the holding company of the owner/developer of the project in respect of the Mass Transit Railway Kowloon Station Package II residential complex. AMOUNTS OF THE FINANCIAL ASSISTANCE: Loan : HK$958.7 million Guaranteed Bank Facilities : HK$440.0 million (yet to be drawn down) Total : HK$1,398.7 million The aggregate amount of the financial assistance given by the Group to the Borrowers as at 7th October, 1999, being HK$1,398.7 million as stated above, represented about 28.6% of the consolidated net asset value of the Group as disclosed in the Company's latest published annual report and accounts for the year ended 31st December, 1998. The Loan of HK$958.7 million is met out of the internal resources of the Group. The Group has no contractual capital injection commitment towards the Borrowers. TERMS OF THE FINANCIAL ASSISTANCE: The loan of the total amount of HK$958.7 million made to the Borrowers bear interest at such rate as may be agreed from time to time among the JV Company's shareholders, with reference to interest rates prevailing in the lending market, currently being fixed at 6.5% per annum (also applicable to all the loans made to the Borrowers by all other JV Company's shareholders). The loan is not repayable for so long as any borrowings under the abovementioned guaranteed bank facilities remain outstanding, except under certain circumstances as permitted under the relevant agreement for those bank facilities. No security is provided for the loan. The bank facilities of the amount of HK$440.0 million as stated above represented part of the Group's aggregate pro rata share of its financial obligations to the Borrowers. Such bank facilities are obtained upon normal commercial terms and at interest rate prevailing in the lending market. No security is provided to the Group by the Borrowers against the issue of the relevant guarantee by the Group. By Order of the Directors Wilson W. S. Chan Secretary Hong Kong, 8th October, 1999