SHKP signs five-year HK$16.8 billion syndicated credit facility

SHKP signs five-year HK$16.8 billion syndicated credit facility

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Sun Hung Kai Properties Limited (SHKP) today signed a five-year HK$16.8 billion syndicated credit facility with a consortium of 17 leading international and local financial institutions. The facility received an overwhelming response from banks, with the loan size increased significantly from the initial amount of HK$5 billion to HK$16.8 billion. This is another clear demonstration of the banking community’s strong faith in SHKP.

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 refinance a HK$15 billion syndicated credit facility due in May this year and as general working capital for the Group’s business development. SHKP has the highest credit ratings among property companies in Hong Kong, with an A1 and A+ rating with stable outlook from Moody’s and Standard & Poor’s, respectively.

SHKP Chairman and Managing Director Raymond Kwok said: “I would like to thank the participating banks for their strong support despite the various challenges facing Hong Kong, including COVID-19, which testifies to their confidence in SHKP and its growth prospects. The Group remains committed to prudent financial management and has maintained a strong financial position by strengthening its cash flow and liquidity. The Group has sufficient upcoming new projects for sale, including the first phase of St Michel in Sha Tin Mid-levels, which will be launched soon. Its property investment portfolio also generates sizeable recurrent income, with its base significantly expanding over the medium to long term upon the gradual completion of large-scale integrated landmarks, including the mega project atop the High Speed Rail West Kowloon Terminus in Hong Kong, ITC in Shanghai, and the Jianghehui joint-venture project in Hangzhou.” 

Mr Kwok added: “We have strong faith in Hong Kong’s future under ‘One Country, Two Systems’ and the prospects of the mainland. The Group will continue to selectively acquire land for development when good opportunities arise. With its extensive experience in weathering various crises during the past 50 years, the Group is confident in once again turning adversity from the pandemic into opportunity and continuing to grow its business over time.”

The facility is backed by Bank of China (Hong Kong) Limited, Agricultural Bank of China Limited, DBS Bank Ltd., Industrial & Commercial Bank of China (Asia) Limited, Oversea-Chinese Banking Corporation Limited, The Hongkong & Shanghai Banking Corporation Limited, Mizuho Bank, Ltd., MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Cathay United Bank Co., Ltd., BNP Paribas, Hang Seng Bank Limited, Standard Chartered Bank (Hong Kong) Limited, United Overseas Bank Limited, Citibank, N.A, Chong Hing Bank Limited, and Industrial Bank Co., Ltd.

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