Sun Hung Kai Properties Limited (SHKP) recently signed a five-year loan facility with 18 prime international and local banks. The credit facility received an overwhelmingly positive response from the banking community, oversubscribed five times of its initial amount.  The final size of the syndicated loan amounted to HK$27.5 billion, the largest ever for the Group.

SHKP Chairman and Managing Director Raymond Kwok said: “We are grateful for the strong support and vote of confidence shown by the participating banks in SHKP. With the full opening of the border and the lifting of all the Covid prevention measures, all social activities have resumed to full normalcy and the economy is also returning to its pre-Covid level. We have full confidence in the prospects of the country and believe that Hong Kong will continue to thrive under ‘One Country, Two Systems’.  We are also confident that with the strong support of the Central Government and Hong Kong’s connectivity to the world, the future of Hong Kong will be very promising.  The Group will continue to invest in Hong Kong and to take advantage of the growth arising from Greater Bay Area and the mainland, and to contribute to the continuous prosperity of Hong Kong and the mainland.”

He added the Group has a strong pipeline of upcoming new projects for sale, and its growing property investment portfolio generates sizeable and reliable recurrent income.  The Group will speed up sales of its residential units to satisfy the housing needs of the Hong Kong public.  “We are excited about our recent wins in the tenders for the Artist Square Towers Project in the West Kowloon Cultural District and the large-scale integrated commercial project in Mong Kok, both of which we believe will create strong synergy with our existing properties in the vicinity and provide fresh impetus to the future growth of Hong Kong as a financial and innovation centre. The Group’s recurrent income stream will be further strengthened upon completion of these two projects in Hong Kong and several integrated developments in Hong Kong and major mainland cities like the High Speed Rail West Kowloon Terminus Development in Hong Kong, ITC in Shanghai and IFC in Nanjing.”

Ms Lu Ying, General Manager of Global Corporate Banking Department of Bank of China (Hong Kong) (BOCHK), said: “SHKP is committed to developing premium quality residential estates, offices and large-scale integrated complexes that lay a solid foundation for its long-term development. As a long-term partner of SHKP, BOCHK is delighted to be appointed as the coordinating arranger and facility agent of its syndicated loan facility. The oversubscribed syndicated loan is a testimony to SHKP’s excellent financial strength and strong reputation. BOCHK will continue to provide a full range of syndicated finance, acquisition and structured finance solutions to our customers and support their business development needs with our professional and comprehensive financial services.”

Mr Matthew Hung, Managing Director, Head of Corporate Coverage, Global Banking Hong Kong of The Hongkong and Shanghai Banking Corporation Limited (HSBC), said: “The oversubscription of SHKP’s latest and largest-ever syndicated loan facility was achieved despite tough markets and is a testament to the developer’s robust operating model. We look forward to supporting the client as they continue to expand in the region.”

Mr Tony Lee, Managing Director and Head of Global Corporate Banking, East Asia of MUFG, said: “MUFG has a long-standing presence in Hong Kong spanning 70 years and over this time, we have demonstrated an unwavering commitment to the local corporate community. We are therefore very pleased to support SHKP in the successful completion of their largest landmark syndicated loan. Being appointed as one of the coordinating arrangers and publicity agents is a strong testament to the trust and confidence the Group placed in us. We look forward to continuing our partnership together and celebrating many more milestones in the future.”

Bank of China (Hong Kong) Limited is the facility and documentation agent. The Hongkong and Shanghai Banking Corporation Limited and MUFG Bank, Ltd. are the publicity agents. They work together to coordinate this facility with the backing of:-

• Agricultural Bank of China Limited,
• DBS Bank Ltd.,
• Industrial and Commercial Bank of China (Asia) Limited,
• Oversea-Chinese Banking Corporation Limited,
• China Minsheng Banking Corporation,
• Hang Seng Bank Limited,
• Fubon Bank (Hong Kong) Limited,
• Standard Chartered Bank (Hong Kong) Limited,
• United Overseas Bank Limited, 
• Sumitomo Mitsui Banking Corporation, 
• Chiyu Banking Corporation Limited,
• Citibank, N.A.,
• BNP Paribas,
• Dah Sing Bank, Limited,
• Mizuho Bank, Limited.

The facility was signed by Sun Hung Kai Properties (Financial Services) Limited, with its parent, SHKP, providing a guarantee.  It has a 30:70 split between a term loan and revolving credit tranches, and a maturity of five years. The proceeds will be used to finance some of its debts and extend the maturity profile which is in line with the Group’s policy of arranging substantial committed facilities for its future development.  SHKP has the highest credit ratings among property companies in Hong Kong, attaining an A1 and A+ rating with a stable outlook from Moody’s and S&P respectively.