Hang Lung Properties is planning a $5 billion syndicated loan to refinance borrowing of the same amount in 2003, according to executive director Terry Ng Sze-yuen. 'This is not a new loan. The move is aimed at lowering financing costs,' he said. 'It will be quite a good move if the company can save the cost of funding by $10 million or more through a loan refinancing.' Mr Ng would not comment on the details of the loan. According to the latest issue of Basis Point, the mid-tier developer is targeting a five-year revolving credit that carries an all-inclusive annual interest rate of 0.33 percentage point above the Hong Kong interbank offered rate (Hibor). It is also said to be considering an all-inclusive seven-year term loan for an annual interest rate of about 0.4 percentage point above Hibor. This compares with the $12.6 billion five-year revolving credit signed by Sun Hung Kai Properties earlier last month that carries an all-inclusive annual interest rate of 0.31 percentage point above Hibor. In response to market comments that the company was sitting on a large amount of cash but had no immediate plans for expansion, Mr Ng said it would develop 10 to 12 projects in the mainland during the next two to three years. Earlier this month, Hang Lung unveiled a plan to develop a 1.5 million-square-foot shopping centre in Tianjin, its first project outside Hong Kong and Shanghai, at a cost of two billion yuan. Construction will start at the beginning of next year. The developer is estimated to have cash and bank loan facilities of about $15 billion.