Hang Lung seeks $5b for refinancing
Hang Lung Properties is arranging a HK$5 billion syndicated loan facility for refinancing and general corporate funding use.
Executive director Terry Ng Sze-yuen said the original target was for a HK$3 billion facility but it was raised to HK$5 billion due to the response from the banking industry. He said the group took advantage of the prevailing low interest-rate environment to arrange refinancing with a longer maturity period as well as lowering the cost of funding.
Mr Ng said the loan would be used for refinancing and general corporate funding, strengthening the group's financial resources to capitalise on investment opportunities including land acquisition. The syndication is scheduled to be officially signed early next month.
At the end of December last year, Hang Lung's consolidated net bank borrowings, after deducting cash and bank deposits, stood at HK$5.72 billion. The group reported a 13.8 per cent drop in profit for the half-year ended December 31 to HK$546.6 million, on lower sales and rental income.
