China New Town Development (HKG:1278) (CNTD) announced that Shanghai Malaren Investment Company Limited (SMI), a wholly owned subsidiary of Shanghai Golden Luodian Development Company Limited (SGLD), which is a non-wholly owned subsidiary of CNTD, has entered into a fixed assets loan agreement with ICBC (01398) for a total principle amount of RMB450 million with term of 71 months for the development of Malaren Maternity Hospital and Baby Care Center Project in its Shanghai Luodian New Town Project.

Effective Interest rate of the loan represents 20% on top of the People’s Bank of China 5-year benchmark rate. Effective interest rate is currently at 8.16% per annum based on current 6.8% benchmark rate.

The security package includes second-lien pledge of retail street and convention centre as collateral owned by SGLD with guarantee by SGLD and SRE Group which owned 68.07% shareholding of CNTD.