Sun Hung Kai Properties (SHKP) expects to generate more than HK$20 billion in revenue from property sales in the year to June, according to executive director Michael Wong Yick-kam. The blue-chip developer generated HK$25.91 billion in property sales last year. Mr Wong said the company raised HK$12 billion in sales between July and December last year, which meant 60 per cent of its sales target had already been raised. SHKP would release about 4,000 units in the next six months, he said. With an increase in cash flow return, he said, the company had no urgent need to raise substantial bank borrowings or to look at other alternatives to raise funds. Higher borrowing costs had also dampened the company's interest in tapping the syndicated-loan market, he said. Mr Wong said the borrowing cost for its HK$200 million fixed-rate note issue launched yesterday had risen to 90 to 100 basis points above the Hong Kong interbank offered rate (Hibor) compared with a market rate of 40 to 50 basis points above Hibor in 1997. The two-year note issue, arranged by BNP Oakreed, was issued at par and will pay a coupon of 8.08 per cent per annum payable on a quarterly basis. In January, the developer launched two fixed-rate note issues with a combined value of HK$1 billion and this month established a euro medium-term note programme enabling it to raise up to US$500 million. Mr Wong said the euro-medium term note programme was established to tap the European capital market when opportunities arose. 'This will provide an alternative fund-raising method for us,' he said. Vice-chairman Thomas Kwok Ping-kwong said SHKP was interested in bidding for most of the government sites to be released for auction from April and expected the land sales to generate good results. 'I know many developers still have strong cash reserves . . . and those sites in urban areas will draw strong responses,' he said.