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SHKP targets US$1.5b

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Sun Hung Kai Properties (SHKP) plans to triple the ceiling on its medium-term euro notes to US$1.5 billion from $500 million because of a favourable market response.

The developer said it had raised an equivalent of about US$400 million through Hong Kong-dollar bonds and a floating-rate US-dollar note since it launched a euro-note programme in February.

An SHKP spokesman said the proceeds from the issues would be used to repay short-term bank loans and general working capital, enabling SHKP to lengthen its debt-maturity profile.

SHKP has said it would maintain its prudent financial policies while diversifying its funding base in global capital markets.

Standard & Poor's has given the euro note an A rating, while Moody's has given it an equivalent A3.

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