SHKP signs five-year HK$22 billion syndicated credit facility
Sun Hung Kai Properties Limited (SHKP) was pleased to announce the signing of a five-year HK$22 billion syndicated credit facility with a consortium of 19 leading international and local financial institutions today. The proceeds will be used as general working capital and to refinance some of the Group’s short-term debts.
The facility was signed by Sun Hung Kai Properties (Financial Services) Limited and guaranteed by SHKP. It is split 30:70 between term loan and revolving credit tranches with a maturity of five years at 70 basis points per annum over HIBOR. The facility received an overwhelming response from the banking community, with high oversubscription leading to it being increased from the original HK$5 billion to HK$22 billion.
SHKP Chairman and Managing Director Raymond Kwok said at the signing ceremony: “This facility gained strong support from the banking community, which testifies to their confidence in SHKP’s future. Our customer-focused approach and delivery of premium properties to buyers and tenants maintain our leading position in the market. SHKP’s contracted sales reached HK$28.6 billion in the first half of financial year 2016/17 and we are confident of achieving our full-year target of HK$40 billion. While our land bank is sufficient to meet development needs for five years, we will seek to increase our reserves through public tender and conversion of agricultural land. SHKP will complete more than three million square feet of residential area for sale annually over the next few years, and we believe that our development business will continue generating strong cash flows.”
Mr Kwok added: “SHKP owns 41 million square feet of investment property in Hong Kong and on the mainland, which achieved high occupancy and positive rental reversions in the first half of the financial year. Gross rental income showed healthy growth and reached nearly HK$11 billion. Over the next five to six years, our Hong Kong and mainland rental portfolios will grow by 35% in terms of attributable floor area. The mega ITC integrated project in the Xujiahui district of Shanghai with 7.6 million square feet of gross floor area is scheduled for completion in phases by 2023, which will significantly boost rental income and further strengthen our financial position.”
The facility is backed by Bank of China (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Hang Seng Bank Limited, China Construction Bank (Asia) Corporation Limited, Citi, Mizuho Bank, Ltd., Industrial and Commercial Bank of China (Asia) Limited, Bank of Communications Co., Ltd., Hong Kong Branch, Oversea-Chinese Banking Corporation Limited, Hong Kong Branch, DBS Bank Ltd., Standard Chartered Bank (Hong Kong) Limited, United Overseas Bank Limited, The Bank of East Asia, Limited, BNP Paribas, Crédit Agricole Corporate & Investment Bank, Nanyang Commercial Bank, Ltd. and Shanghai Commercial Bank Limited.
SHKP conducts businesses in an open and responsible manner and follows good corporate governance practices by maintaining timely and effective communications with shareholders and investors. It is a socially responsible company that contributes to Hong Kong by promoting reading and holistic development and healthy, sustainable lifestyles, as well as helping the less fortunate. SHKP currently has the highest credit ratings among property companies in Hong Kong: A1 with a stable outlook from Moody’s and A+ with a stable outlook from Standard & Poor’s.