Company Briefs: Vibrant Group

Vibrant Group

Mainboard-listed Vibrant Group is seeking note holders' approval to waive certain key obligations for its $66 million series of 7.50 per cent notes due in 2020.

The integrated logistics provider is asking, among other things, that note holders add a mandatory redemption provision, which would allow the company to sell all of the shares it owns in Sabana Investment Partners for cash. Net proceeds from the sale will be deposited in escrow and used towards redeeming the notes.

In a statement to the Singapore Exchange before the market opened yesterday, the group is also asking for waivers of "any requirement, covenant and term" in the trust deed and notes which would be breached as a result of, or in connection with the "Blackgold Events".

The Blackgold events refer to a number of developments that stemmed from accounting irregularities at Vibrant's coal production subsidiary Blackgold International Holdings.

Early last month, the group had announced that eight subsidiaries were facing litigation with respect to a claim that they failed to comply with certain payment and guarantee obligations, among others, under the finance documents relating to a 500 million yuan ($100.3 million) loan facility for which they had provided security.

The suit was filed by China Minsheng Banking Corporation Limited (Chongqing branch) in the Chongqing People's High Court.

Vibrant has called for a bond holders' meeting on Oct 26 to vote on its proposal. Bond holders who give their consent by Oct 24 will be eligible for a 0.25 per cent consent fee, which will be sweetened to 0.35 per cent if consent is given before Oct 17.


CapitaLand

CapitaLand has secured a five-year, $300 million sustainability-linked loan, said to be the first and largest in Asia's real estate sector, from DBS Bank.

The multi-currency loan is linked to the developer's listing on the Dow Jones Sustainability World Index (DJSI World), which tracks established firms in areas like environmental, social and governance (ESG) efforts. Unlike green loans, where the funds are used for certain types of projects, CapitaLand may use the loan for general corporate purposes.

Meanwhile, interest rates on the loan "will be further reduced on a tiered basis, contingent on CapitaLand's ongoing performance" against a set of ESG indiators based on RobecoSAM's Corporate Sustainability Assessment and a listing on the DJSI World.

A version of this article appeared in the print edition of The Straits Times on October 05, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe