28 Aug 2017
As part of its effort to improve credit risk management, SET-listed digital finance firm Group Lease Public Company Limited (GL) has secured the pre-payment of loan principals and accrued interests totaling US$13.6 million or 453.2 million baht from its Cyprus borrowers.
In an official filing with the Stock Exchange of Thailand (SET) today (August 28), GL said the pre-payment comprised of three loan agreements with Cyprus-based Adalene Limited with total principals amounting to US$13.13 million (436.9 million baht) plus accrued interests of US$489,158 (16.3 million baht). The pre-payment was made with GL Holdings (GLH), GL’s wholly-owned subsidiary in Singapore.
As a result of the pre-payment, a pledge of 11.5 million GL shares made with GLH has been released.
Following the pre-payment, the remaining outstanding principals of the Cyprus borrowers now amounted to US$16.5 million or 547.5 million baht plus accrued interests of US$326,202 or 10.8 million baht. The Cyprus borrowers included Adalene Limited and AREF Holdings Limited.
According to Mr. Tatsuya Konoshita, chairman of GL’s executive committee, the pre-payment of the Cyprus loans was made in the best interest of GL since the principals were paid earlier but the pre-payment included all interests until September 30.
“GL is currently expanding into the high-potential Myanmar market with higher interest rates of more than 40% as compared to the average 15% from the (Cyprus) borrowers. We have already begun to shift the new funds to support our business expansion in Myanmar,” Mr. Konoshita stated.
For the remaining outstanding Cyprus loans of US$16.5 million, GL now has secured collateral value of US$23.7 million or a collateral coverage ratio of 144%.
Meanwhile, GL’s remaining outstanding loans to another group of SME borrowers in Singapore amounting to US$39.6 million are covered by collateral value of US$48.8 million or representing a coverage ratio of 123%
Mr. Konoshita noted that there are now no longer any GL shares in the collaterals from both the Cyprus and Singapore borrowers. He added that these loans have been secure, with no overdue from the beginning until now.
“The (Cyprus and Singapore) borrowers have enough ability to pay as GL has stated in the past,” he added.