OUE obtains S$425m loan from OCBC

Overseas Union Enterprise (OUE) has secured a S$425-million term loan facility from OCBC Bank.

The mainboard-listed property and hospitality company will use the loan to fund the development and construction of a property located at Leonie Hill Road through its subsidiary Cove Development.

OCBC has also offered Cove Development an interest rate swap facility for a notional amount of up to S$375 million.

This is to fix interest swap transactions for tenure of up to four years or at the end of September 2014.

OUE’s earnings for this year are not likely to be affected by the transaction.