Financial World Holdings (03918) announced that on October 17, 2023 (after the Stock Exchange trading session), the company (as borrower) and lender ChenLipKeong Capital Limited (as lender) entered into a loan agreement. According to this, the lender agreed to provide a loan of up to 80 million US dollars to the company. The sole purpose of the loan is to refinance and/or partially pay off the outstanding 2024 notes at maturity.
After careful consideration, the company believes that reasonable loan terms, including competitive financing costs, will improve the company's liquidity position. The terms of the loan agreement are determined by negotiations between the lender and the company on a fair basis after considering various financing options available to the company. The company believes that when the outstanding 2024 notes expire in July 2024, the loan, together with the company's cash resources, will be sufficient to settle all of its financial liabilities.