Hua Nan Commercial Bank sold to co-lender CTBC Bank its USD 15.5m hold of a Gaw Capital-linked USD 258m-equivalent loan at about 50 cents, clearing the way for a maturity extension, according to two sources familiar with the matter.

The Taiwanese bank was the only lender that refused to accede to a one-year maturity extension proposed by Gaw Capital on the USD 258m-equivalent, CNY and USD secured loan that funded the acquisition of Ocean Towers (海洋大厦), a Grade A office building in Shanghai in 2018, as reported in December. Hua Nan Commercial Bank doesn’t hold any of the loan’s CNY tranche, according to Debtwire data.

Hua Nan Commercial Bank’s parent Hua Nan Financial Holdings stated in a 10 February Taiwan Stock Exchange disclosure that the bank booked a loss of USD 7.44m from the disposal of a syndicated loan to CTBC Bank in the transaction amount of USD 15.5m. The filing does not specify the details of the loan.

The USD/CNY bullet loan obtained by Gaw Capital vehicle Eternal Wish was unpaid after it matured on 12 November 2025 amid the debtor’s inability to obtain the unanimous lender consent required for a maturity extension, as reported in December.

Except Hua Nan Commercial Bank, all other eight providers of the USD tranche including CTBC Bank had by 16 December agreed to Gaw Capital’s proposal to extend the facility’s maturity to November 2026, as reported. The real-estate-focused private equity fund sought the extension so that it could get more time to sell the Ocean Towers office building.

With Hua Nan out of the picture now, the remaining lenders are refreshing their approvals for the maturity extension to November 2026 and the amendment is expected to be completed soon, said the two sources.

As reported, Hua Nan around mid-December informed the loan’s facility agent HSBC that it was unable to obtain its head office’s approval for the maturity extension or a plan to sell its hold of the loan. The two sources were not aware why Hua Nan changed its mind.

Hua Nan and CTBC did not respond to requests for comment.

Loan

The loan was originally due on 12 November 2024, but lenders late in 2024 unanimously agreed to extend its maturity by one year so that the facility could be repaid from the proceeds of Gaw Capital’s sale of Ocean Towers, as reported.

Gaw Capital told banks in late 2024 that it was very confident that the sale of Ocean Towers would be completed within a year.

LC Logistics, a Qingdao-headquartered, Hong Kong-listed, provider of cross-border seaborne logistics services, signed a letter of intent with Gaw Capital in 2024 to purchase the Shanghai office tower, but the deal lapsed.

Then in September 2025, Gaw Capital informed banks that it had signed a new letter of intent with another prospective buyer, without naming them, as reported.

Eternal Wish’s originally USD 258m-equivalent loan signed in November 2021 refinanced a USD 254m-equivalent loan that backed a Gaw Capital-led consortium’s acquisition of Ocean Towers in 2018, as per Debtwire data. The consortium included Vancouver-headquartered QuadReal Property Group.

HSBC was the mandated lead arranger, bookrunner and underwriter for the loan deal. In addition to HSBC, Hua Nan and CTBC Bank, the other banks holding the loan’s USD tranche are Dah Sing Bank, Hang Seng Bank, China CITIC Bank International, E. Sun Commercial Bank, KGI Bank and Bank SinoPac, Debtwire data shows.