Sun Hung Kai Properties (SHKP) says the company is in a sound financial condition, and has no plans to arrange a secured loan. The developer issued the statement in response to a report that it was considering pledging properties as collateral for a $500 million loan in order to secure lower borrowing rates. SHKP denied the report, saying it had never contemplated a secured loan nor had it received any secured loan proposals put forward by banks. The group said its policy to borrow on an unsecured basis was unchanged. It said it had sold more than $12 billion worth of properties over the past six months and had substantial committed credit facilities for foreseeable business needs. Analysts said developers were finding it more difficult to secure cheap loans in the harsh conditions prevailing at present. It has also been reported that Cheung Kong (Holdings) is negotiating with banks to arrange a $1 billion syndicated loan. Analysts said it would not be surprising if SHKP and Cheung Kong were raising loans in the market as the developers had recently spent billions of dollars on land acquisitions. SHKP recently paid $3.61 billion for the Leighton Hill site in Causeway Bay. Cheung Kong snapped up two government sites - paying $2.89 billion for a residential-commercial site in Canton Road, Tsim Sha Tsui, and $120 million for a Ma On Shan hotel site last month.