Banks unveil PAA loan plan
BANKS have submitted proposals for the HK$11.6 billion syndicated loan for the Provisional Airport Authority.
Bankers said they had put together financing proposals for the deal, but said it was unclear when a mandate would be awarded or what structure the authority would seek.
The authority is conducting due diligence studies on the banks' proposals.
Bankers said the authority was eager to get the deal settled, and predicted a shorter maturity than similar financings because financial support agreements that were signed earlier this year required the authority to pay off phase 1A of the airport by the end of 2001.
Phase 1A includes cargo-handling, fuel-supply facilities and catering.
The three components of the syndication involve a US$200 million term loan, a HK$120 million construction bond and a HK$24 million revolving credit.
Under the terms of the financial support agreements, the Hong Kong Government will commit HK$60.3 billion of government equity. There will also be HK$23 billion of private-sector debt.
