Yep29 Jan 2018 14:07
HSBC banking facility too:
Increased bank financing
The Company has entered into a new facility agreement with the Hongkong and Shanghai Banking Corporation ("HSBC'). HSBC, the Company's existing banker, has agreed to provide additional banking facilities including an invoice discounting/factoring facility of HK$45m, which will be used exclusively for the trade receivables from MTRC. Also, HSBC will provide a trade facility of HK$8m. Interest will be charged at HSBC's HKD Best Lending Rate. This facility will provide additional working capital to ensure that the MTRC contract can operate smoothly alongside the rest of the Group's operations.
In addition, the Company has been provided a surety bond facility of HK$30m by a leading insurance company, Berkshire Hathaway Specialty Insurance Company. The Company has used HK$11.7m of the facility for the performance bond of the MTRC contract. The unutilised facility as at today is HK18.3m and can be utilised for other potential projects in coming year.