China Resources Land Limited entered into a facility agreement with a bank, as lender, for a term loan facility in the amount of HKD 1,000 million. The final maturity date of the Loan Facility is the earlier of the date falling five years after the date on which first advance of the Facility Agreement is or is intended to be made, and June 10, 2032. Pursuant to the Facility Agreement, it shall be an event of default if CRH ceases to be the single largest shareholder of the Company which has an aggregate beneficial ownership and control of not less than 35% in the share capital of the Company; or CRH does not have, or ceases to have, the ability from a practical perspective to control the appointment by the Company?s shareholders of directors to the Company?s board of directors.
As at the date of this announcement, CRH is the controlling shareholder of the Company, and CRH is beneficially interested in approximately 59.55% of the issued share capital of the Company. Pursuant to the Facility Agreement, it shall also be an event of default if the Central Government of the People?s Republic of China ceases to be the beneficial owner of more than 50% of the share capital of CRH. At any time after the occurrence of any event of default under the Facility Agreement and whether or not such event is continuing, the Lender may by notice in writing to the Company declare the Loan Facility to be cancelled; and/or the advances under the Facility Agreement together with interest accrued thereon and all other sums payable by the Company thereunder to be payable on demand by the Lender or immediately due and payable.
