| For Immediate Release | May 16, 2003 |
Sun Hung Kai Properties (SHKP) announced today (May 16) that it has completed an HK$8 billion, seven-year Syndicated Revolving Credit Facility with a consortium of 20 leading local and international banks. The facility was very well received by the banks and was oversubscribed at both the underwriting and general syndication stages. SHKP decided to increase the facility from HK$5 billion to HK$8 billion after consulting with the coordinating arrangers and underwriters.
The facility has a maturity of seven years and carries an interest margin of 0.42 per cent per annum over 1 or 2 weeks, 1, 2, 3 or 6-month HIBOR. SHKP will use part of the proceeds for general working capital and the remainder to refinance some of its existing short-term debts. This in line with the developer's policy of lengthening the maturity profile of its funding and procuring adequate stand-by facilities for contingencies.
Speaking at the loan-signing ceremony, SHKP Vice Chairman and Managing Director Raymond Kwok said the fact that the facility was oversubscribed by a consortium of 20 leading banks highlights the SHKP's excellent reputation in Hong Kong and overseas.
Mr Kwok said that SHKP has a robust cash inflow from the pre-sale of projects under development and rental income. Total property sales for 2003 are estimated at HK$12 billion, of which HK$9 billion is expected to be generated from the forthcoming pre-sales of six residential projects. The developer has seen residential sales gradually picking up of late, and with the easing of SARS and SHKP's hygiene-conscious property management, there has also a gradual recovery of pedestrian traffic in its shopping malls. SHKP's recurrent income is generated primarily by a well-diversified investment property portfolio that includes a balanced mix of retail premises, offices, residential properties and hotels. SHKP is expected to maintain annual gross rental income from investment properties at over HK$5 billion.
He added that with solid cash flows from rental income and property sales, together with low interest costs, SHKP's net debt to shareholders' funds is low at about 12%, and its interest coverage was high at 14.6 times for the six months ended December 31, 2002.
The facility has the backing of the following major local and international financial institutions:
| Co-ordinating Arrangers | |
| Bank of China (Hong Kong) Limited Industrial and Commercial Bank of China (Asia) Limited Standard Chartered Bank Sumitomo Mitsui Banking Corporation The Bank of Tokyo-Mitsubishi, Ltd. BNP Paribas Hong Kong Branch Mizuho Corporate Bank, Ltd. Bank of Communications, Hong Kong Branch The Hongkong and Shanghai Banking Corporation Limited Hang Seng Bank Limited Citigroup |
(Book agent) (Book agent) (Book agent) (Facility agent) (Signing agent) (Documentation agent) (Publicity agent) |
Co-Arrangers
Australia and New Zealand Banking Group Limited
Chekiang First Bank Ltd.
China Construction Bank, Hong Kong Branch
Tai Fung Bank, Limited
Wing Lung Bank, Limited
Bank of China, Macau Branch
The Bank of East Asia, Limited
Liu Chong Hing Bank Limited
Senior Managers
Fortis Bank Asia HK
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