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Hong Kong Finance : DISCLOSEABLE TRANSACTION PROVISION OF FINANCIAL ASSISTANCE (in PDF)

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11/22/2017 | 07:16am EST

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Hong Kong Finance Group Limited

信 貸 限 公

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1273)

DISCLOSEABLE TRANSACTION PROVISION OF FINANCIAL ASSISTANCE

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 22 November 2017, the Loan Agreement was entered into between HK Finance, an indirect wholly-owned subsidiary of the Company as lender, and Customer F as the Borrowers. Pursuant to the Loan Agreement, HK Finance granted a secured loan in the principal amount of HK$39.0 million to the Borrowers for a term of twelve months.

LISTING RULES IMPLICATIONS

As certain applicable percentage ratios under the Rule 14.07 of the Listing Rules in respect of the amount of financial assistance granted to the Borrowers are more than 5% but less than 25%, the Loan granted under the Loan Agreement constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 22 November 2017, the Loan Agreement was entered into between HK Finance, an indirect wholly-owned subsidiary of the Company as lender, and Customer F as the Borrowers. Pursuant to the Loan Agreement, HK Finance granted a secured loan in the principal amount of HK$39.0 million to the Borrowers for a term of twelve months.

The principal terms of the Loan Agreement are set out below:

THE LOAN AGREEMENT

Date of the Loan Agreement

: 22 November 2017

Lender : HK Finance

Borrower : Customer F

Principal : HK$39.0 million

Interest rate : (i) for the first month, 1.5% per month (i.e. 18% per annum); and

(ii) for all subsequent months, 1.4% per month (i.e. 16.8% per annum)

Repayment : Subject as otherwise provided in the Loan Agreement,

the Borrowers shall pay the monthly interest for 12 months with the principal at loan maturity

Prepayment : The Borrowers shall have an option to make early

repayment of the whole or part of the said Loan after the date of loan drawdown subject to the Borrowers giving HK Finance not less than one calendar month's advance notice in writing

Security : An all-money first legal charge and all-money second legal charge in favour of HK Finance in respect of a group of residential properties located in Hong Kong, with valuation conducted by an independent professional property valuer with an aggregate amount of approximately HK$108.0 million

FUNDING OF THE LOAN

HK Finance will finance the Loan with the Group's internal generated funds.

INFORMATION ON THE BORROWER

The Borrowers are a group of three individuals who are merchants and were approached by the Group through its network. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, the Borrowers and their ultimate beneficial owners are third parties independent of the Company and its connected persons (as defined under the Listing Rules).

REASONS FOR AND BENEFITS OF ENTERING INTO THE LOAN AGREEMENT

The Company is an investment holding company. The Company and its subsidiaries are principally engaged in money lending business in Hong Kong.

The granting of the Loan to the Borrowers pursuant to the Loan Agreement is in the ordinary course of business of the Group and on normal commercial terms. The Directors consider that the granting of the Loan is a financial assistance provided by the Company within the meaning of the Listing Rules.

The terms of the Loan Agreement were negotiated on an arm's length basis between HK Finance and the Borrowers and were on normal commercial terms based on the Company's credit policy. Taking into account the financial background and repayment ability of the Borrower, the Directors are of view that a stable revenue and cashflow stream from interest income is expected to be generated from the Loan. The Directors consider and believe that the terms of the Loan Agreement and the entering into of the Loan Agreement are fair and reasonable and in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As certain applicable percentage ratios under the Rule 14.07 of the Listing Rules in respect of the amount of financial assistance granted to the Borrowers are more than 5% but less than 25%, the Loan granted under the Loan Agreement constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

DEFINITIONS

In this announcement, the following expressions have the following meanings:

''Board'' the board of Directors

''Borrowers'' or

''Customer F''

A group of three individuals pursuant to the Loan Agreement and third parties independent of the Group and its connected persons (as defined under the Listing Rules)

''Company'' Hong Kong Finance Group Limited (港信貸限公 ), a company incorporated in the Cayman Islands with limited liability, the shares of which are listed on the Main Board of the Stock Exchange

''Director(s)'' the director(s) of the Company

''Group'' the Company and its subsidiaries

''HK$'' Hong Kong Dollars, the lawful currency of Hong Kong

''HK Finance'' Hong Kong Finance Company Limited, a company

incorporated in Hong Kong with limited liability with money lenders licence registered under Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong), which is an indirect wholly-owned subsidiary of the Company.

''Hong Kong'' the Hong Kong Special Administrative Region of the People's Republic of China

''Listing Rules'' the Rules Governing the Listing of Securities on the Stock

Exchange

''Loan'' the secured loan with principal amount of HK$39.0 million granted by HK Finance to Customer F pursuant to the Loan Agreement

''Loan Agreement'' the loan agreement dated 22 November 2017 entered into

between HK Finance and Customer F in respect of the Loan

''Stock Exchange'' The Stock Exchange of Hong Kong Limited

On behalf of the Board

Hong Kong Finance Group Limited Chan Kwong Yin William

Chairman

Hong Kong, 22 November 2017

As at the date of this announcement, the Board comprises the following members:

Executive Directors: Independent Non-executive Directors:

Mr. Chan Kwong Yin William (Chairman) Mr. Chan Siu Wing Raymond Mr. Chan Koung Nam Mr. Chu Yat Pang Terry

Mr. Tse Pui To (Chief Executive Officer) Mr. Cheung Kok Cheong

Hong Kong Finance Group Ltd. published this content on 22 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 November 2017 12:14:19 UTC.

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