Citic Pacific has appointed Chase Manhattan Asia, HSBC Investment Bank Asia and J P Morgan Securities Asia as co-ordinating arrangers for a HK$3.5 billion loan. The proceeds from the loan will be used for general corporate requirements. Chase Manhattan Asia will serve as the facility agent while the other two financial institutions will act as book-runners. The facility comprises two tranches. Tranche A is HK$2.72 billion and will be available in Hong Kong and United States dollars. The tranche will have a tenure of seven years with a put option at the end of the fifth year. Tranche B, of US$100 million, will be available in US dollars only and have a final maturity of seven years. The interest margin for Tranche A is 0.6 per cent per annum from year one to five and 0.7 per cent per annum from year six to seven. Tranche B carries an interest margin of 0.675 per cent per annum throughout its tenure. A selected group of related banks will be invited to join as arrangers of the loan. Citic Pacific has recently embarked on a series of fund-raising exercises including the sale of Hongkong Telecom shares in June for HK$3 billion and a HK$3.18 billion placement of new shares that analysts said had been largely earmarked for China projects. According to Kleinwort Benson Research, Citic Pacific has raised equity of about HK$22 billion in the past few years and spent HK$40 billion.