September 04, 12:36 PM 
514 Chai Chee Lane 03-16, Singapore 469029 Here's how the loan works:
[quipbox float="right" boxcolor="000000" boxhead="How expensive is the new $45 million loan"]
According to the details filed with the Singapore Exchange (SGX):
- The new six-year loan will cost the church 8 percent annual interest, plus an additional $2.6 million a year for five years
- This interest and other charges work out to an average of $5.77 million annually.
- This works out to an average rate of around 13 percent annually for the six years of the loan, much higher than home loan rates of less than 2 percent.
- The principle sum of $45 million will still need to be paid back at the end of six years.
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1. $50 million: City Harvest Church initially took out a loan of $50 million from Galaxy Capital in 2011 to partly fund the church's acquisition of the Suntec Singapore International Convention and Exhibition Centre stake.
2. Suntec stake: City Harvest bought a 20 percent stake in Suntec in 2010 and increased it to 39.2 percent in 2011 using money it borrowed. It pledged 19.2 percent of that stake for the Galaxy loan.
3. Unable to pay off loan: This $50 million loan could not be paid off within the scheduled period due to the current trial where church founder Kong Hee and five of his deputies are facing criminal breach of trust charges.
4. Clearing old loan: City Harvest has now borrowed $45 million to discharge the $50 million Galaxy Capital debt.
5. New lenders: This new loan is provided by Freight Links Express Holdings and a local businessman, Henry Wee.
6. Suntec-backed loan: The church has borrowed this sum against its stake in Suntec Singapore International Convention and Exhibition Centre.
7. Default: This means the church could lose its entire 39 percent slice of the prime Suntec property if it defaults on the steep repayments for borrowing this $45 million sum.
8. Right to buy: In the event of a loan default, Freight Links and the businessman Henry Wee can buy City Harvest's stake in Suntec if Suntec Real Estate Investment Trust, which owns 60.8 percent of the convention centre, declines to buy.
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