$3.5b loan facility for Kerry

Kerry Properties, the Hong Kong-listed flagship of Malaysian businessman Robert Kuok, yesterday signed a $3.5 billion five-year unsecured syndicated loan facility with 19 international institutions.

Bankers said the facility had been oversubscribed early in the underwriting stage.

As a result, the amount had to be increased from the original $3 billion to satisfy the demand.

Chairman Allan Ng said: 'The good response from banks demonstrates the banking community's confidence in Kerry Properties, and the strong support of these financial institutions greatly assists us in our continued expansion.' In a bid to enable more banks to participate in the facility, institutions can either provide the funds in US or Hong Kong dollars.

About $2.51 billion of the facility is provided in the local currency.

The facility pays an interest margin of 60 basis points a year for Hong Kong dollars and 55 basis points for US dollars.

It is a revolving credit for the first three years, meaning that interest expenses can be incurred only when Kerry draws down the loan. From the fourth year, the facility converts into a term loan.