Fil-Estate borrows $12M from HK's Lim Asia to fund projects

Property developer Fil-Estate Land Inc. said Tuesday it had sealed a $12 million loan agreement with Hong-Kong based Lim Asia Alternative Real Estate Fund, to fund projects of its subsidiary Fil-Estate Urban Development Corp. In a disclosure to the Philippine Stock Exchange, Fil-Estate said Lim Asia will subscribe to approximately 80 million Fil-Estate shares at P1 each in connection with the agreement. Fil-Estate will also issue Lim Asia warrants worth P136 million for the loan. "The foregoing transaction will likewise pave the way for the finalization of a $12 million construction loan, an application for the approval of which has been filed with the Bangko Sentral ng Pilipinas," the statement said The realty developer said negotiations are ongoing for an additional $5 million convertible bond or equity-linked issue. - Patricia de Leon, GMANews.TV