Hong Kong Finance Group (HKG:1273) said its subsidiary HK Finance (PL) agreed to provide a HK$40 million loan to an existing borrower.
The new loan carries interest of 15% per year for 12 months from the Sept. 18 drawdown date, according to a Hong Kong bourse filing on Tuesday.
The loan is secured by a first mortgage over a residential property on Mount Austin Road in Hong Kong, valued at about HK$145 million as of Sept. 10.
Proceeds from the new loan will be used to fully repay a previous loan.