HKET (HKG:0423) inks machinery finance lease with HSBC

Hong Kong Economic Times Holdings Limited (HKG:0423) announced that Euron, an indirect wholly-owned subsidiary of the company, as the lessee, has entered into a finance lease arrangement on 28 September 2012, pursuant to which Euron agreed to sell machineries to The Hongkong and Shanghai Banking Corporation Limited at an aggregate consideration of HK$160 million and the bank agreed to leaseback the machineries to Euron for a total lease payments of HK$169.7 million. The financing amount is up to an aggregate amount of HK$150 million.

Pursuant to the finance lease arrangement, the machineries are leased back to Euron for a period of 60 months commencing from 28 September 2012. The initial rental under the finance lease arrangement is HK$10 million and the total financing amount under the finance lease arrangement is up to an aggregate amount of HK$150 million, repayable at a monthly rental of up to HK$2.5 million commencing from 28 September 2012.

Assuming the total financing amount of HK$150 million is fully drawn down, the total interest payable under the finance lease arrangement amounts to HK$9.7 million, which is calculated at an interest rate which is the aggregate of 2.25% per annum and one month HIBOR.

During the term of the lease, the ownership of the machineries belongs to the bank.

Source: http://www.chinesestock.org/show.aspx?id=157873&cid=28

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