Lender covenant reporting

Covenants calculated the way the bank actually defines them

A Hong Kong facility from a bank such as one of the major note-issuing or international banks operating locally rarely uses a generic debt-to-EBITDA or coverage ratio. It uses the exact definition written into your loan agreement, which may adjust EBITDA differently, treat MPF liabilities differently, or set the covenant in Hong Kong dollars while part of your revenue or debt sits in US dollars or renminbi. Reporting against the wrong definition is how a covenant test fails on paper even when the business is genuinely healthy.

What the reporting package includes

We build covenant calculations to your loan agreement's defined terms, whatever currency basis it specifies, converting USD or RMB-denominated figures to Hong Kong dollars consistently with how the agreement itself defines conversion. Monthly or quarterly compliance certificates are prepared in the lender's required format, and a borrowing base certificate is built where the facility requires one. Where the covenant definition of EBITDA includes or excludes specific add-backs, such as MPF cost treatment or related-party items common in a Hong Kong group structure, the calculation follows the agreement's language rather than a generic formula.

Early warning, before the test date

We flag a trend moving toward a covenant breach as early as possible, using the same rolling cash and margin data behind your monthly close, so there is time for a conversation with the lender before a formal test rather than at the deadline.

Your relationship with the bank stays yours

We prepare the reporting package and can join a lender call if asked, but the lending relationship and any waiver discussion stays between you and your bank.