Hyflux unit restructures $121.46m loan for China plant

The loan facility from the Bank of China has been extended a further three years to 2026.

Embattled water treatment firm Hyflux has successfully restructured its loan facility of $121.46m (RMB617m), which has been extended by a further three years to 2026, for its seawater desalination plant in Dagang City, Tianjin province, an announcement revealed.

According to its filing with the local bourse, Hyflux entered into negotiations with the Bank of China (BOC) in relation to the loan agreement between the bank and the firm’s wholly-owned subsidiary Tianjin Dagang (TJDG) Newspring Co.

BOC agreed on the extension plan, with an adjusted repayment schedule reflecting lower annual repayments, which Hyflux noted will ease pressure on the TJDG Newspring plant in the short to medium term.

Also read: Hyflux CEO Olivia Lum vows to get $1 annual salary until firm ends restructuring

“BOC will also be provided with a pledge of the TJDG plant, which is owned by TJDG Newspring,” Hyflux said.

Amidst ongoing talks with potential white knights from the Middle East and China, the water treatment firm has been plagued by fines and fallouts with financial institutions. In April, Maybank ended its collaboration agreement with Tuaspring and Hyflux, whilst two months later, French bank BNP Paribas slapped the firm with a $78.68m claim.

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