Mandarin Oriental International has arranged a HK$3 billion credit facility to refinance borrowings of HK$1.7 billion and generate working capital. The two-part facility will increase the average tenure of Mandarin Oriental's existing loans to six years from about three. The first portion of the facility is a five-year revolving credit of HK$1.7 billion, while the second is a seven-year term loan of HK$1.3 billion. 'The new facilities not only increase significantly the average term of our bank debt, but are also competitively priced,' chief executive Edouard Ettedgui said. 'We are positioning Mandarin Oriental as one of the world's leading luxury hotel brands, progressing year-on-year towards operating 10,000 rooms in major international business centres and leisure destinations.' Proceeds of the syndicated loan would also help the company - part of Jardine Matheson group - further capitalise on its luxury brand and support growth, Mr Ettedgui said. The three co-ordinating arrangers of the facility are Standard Chartered Bank, BNP Paribas Hong Kong and Bank of Tokyo-Mitsubishi. The facility was substantially oversubscribed when the general syndication closed. The loan was arranged by 20 international banks. Mandarin Oriental has a portfolio of 21 hotels worldwide, among them two under development in New York and Tokyo.