China Everbright Holdings

China Everbright Holdings says it will borrow US$1.05 billion to finance up to 70 per cent of its $11.4 billion purchase of 7.74 per cent of Hongkong Telecom.

The Telecom shares would be charged as security for the loan, and China Everbright would unconditionally guarantee the obligations of the subsidiary borrowing the funds, it said.

It said the one-year facility would pay an all-in of 45 basis points over the London interbank offered rate, and drawdown would be on or before June 6.