ARA Trust Management (Suntec), as manager of Suntec REIT, is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT, has today successfully entered into a facility agreement for a $700 million term loan facility.

The loan facility comprises a $350 million 3-year loan and a $350 million 5-year loan, at a blended all-in interest margin of 1.5% from a panel of nine banks. The loan facility will be secured by Suntec City Mall. The facility agreement was signed with local banks DBS Bank, United Overseas Bank, and 7 foreign banks namely Bank of China Limited Singapore Branch, CIMB Bank Berhad Singapore Branch, Citibank N.A. Singapore Branch, Commonwealth Bank of Australia Singapore Branch, Natixis Singapore Branch, The Bank of Nova Scotia Asia Limited and Standard Chartered Bank.

The loan facility will be used to prepay the $575 million 3-year loan maturing in FY 2012, and to refinance part of the $400 million club loan maturing in FY 2011. With this, the weighted average term to expiry of Suntec REIT’s debt portfolio has been extended from 1.8 years to 3 years.

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