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Cheung Kong syndicates $2b

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Cheung Kong (Holdings) has mandated a group of six banks to arrange a $2 billion five-year syndicated loan, which has been fully underwritten.

The banks are Bank of America Asia, BOCI Capital, CEF Capital, Industrial & Commercial Bank of China, KBC Bank and SG Asia.

Banking sources said the loan would be officially launched on Monday and they expected it would be over-subscribed.

They said the interest rates for the loan would be lower than that of a similar loan recently launched by utility Hongkong Electric Holdings.

Lending rates of property firms are usually higher than conglomerates or utilities.

A banker said the banking sector did not consider Cheung Kong a property firm but 'a diversified conglomerate', which controls Hutchison Whampoa.

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