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LONDON - Aseana Properties Limited (LSE:ASPL) has secured a facility of up to 45.2 million Malaysian ringgit (RM) from AmBank (M) Berhad to settle its defaulted medium term notes, the company announced Tuesday.
The property developer said the new facility will be used by its wholly owned subsidiary, ICSD Ventures Sdn Bhd, to pay off the remaining RM39.9 million of the defaulted Silver Sparrow Bhd Medium Term Notes, fund the reopening of the Sandakan Hotel, and provide working capital.
As of December 31, 2024, the defaulted notes stood at RM61 million in principal with a weighted average interest rate of 10.26% per annum. Receivers were appointed to ICSD on November 5, 2024, following the default.
The company has reduced the outstanding principal to approximately RM37 million through fundraising exercises in February and March 2025, which collectively raised about $6.5 million.
The new facility offers more favorable terms than the previous notes, including an interest rate expected to be below 6% per annum and a repayment period of up to 10 years from the first drawdown, with a 12-month grace period.
Security arrangements for the new facility include AmBank holding a first legal charge over the Sandakan Hotel and Sandakan Harbour Mall, as well as a fixed and floating charge over ICSD’s assets.
Aseana expects the facility to be drawn down by early July 2025, after which the company anticipates the receivers will be discharged, allowing it to regain control of ICSD’s assets and operations.
According to the press release statement, this refinancing aligns with the company’s strategy to safeguard ownership of its remaining assets and improve its financial position.
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