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.