- Against the backdrop of rising debt levels and home prices in China, the government introduced a new policy in October 2020 to slow credit growth among property developers. Dubbed the “three red lines” policy, there are limits on debt-to-equity, debt-to-cash, and debt-to-assets growth levels. The new regulations resulted in a tightening of credit to property developers, and while EC World REIT (SGX:BWCU) is not in the residential property sector, lenders have become much more cautious in giving out property loans.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Subsequently on 29 June 2022, EC World REIT announced the extension of its onshore loans to 30 April 2023. Similar to the terms for its offshore loan extension, the Sponsor also took an undertaking to commence refinancing of the facilities immediately and ensure that at least 25% of the facilities are repaid by 31 December 2022.
MOU for sale of two EC World REIT's properties
- Read more at SGinvestors.io.