Hutchison Whampoa's Italian third-generation mobile-telephone unit plans to borrow Euro3 billion (HK$30.03 billion) to refinance debt, market sources said. Hutchison plans to guarantee the five-year bullet loan, the sources said. A bullet loan allows a borrower to pay back the entire principal when the loan matures instead of making partial payments during the life of the facility. Banks have been asked to submit bids by November 24. The new borrowing came as Hutchison failed to list its Italian 3G unit this year in a deal that could raise up to Euro2 billion. Hutchison shelved the listing plan because investors baulked at the valuation the company asked for, sources had said earlier. Hutchison's 3G subscribers in Italy grew 16 per cent in the first half of this year to 6.4 million, according to the company's interim financial report. Revenue rose 60 per cent year on year to Euro1.04 billion. The new loan will refinance a Euro3.2 billion loan the company arranged in 2002. That deal featured a Euro1 billion non-recourse tranche, carrying an interest margin of 275 basis points above the European interbank offered rate, and a Euro2.2 billion full recourse tranche that cost the firm 100 basis points more than Euribor. A non-recourse loan pays lenders back only from the project the funds were borrowed for, in this case Hutchison's Italian 3G network. A recourse loan allows lenders, in the event of default, to lay claim to other cash flows beyond the project that was financed from any borrowing. Banks were likely to earn 30 to 35 basis points in fees on the new loan, a source said. Hutchison Whampoa's outstanding euro-denominated loans total Euro9.4 billion, including borrowings from AS Watson, 3G operations, and the parent company. AS Watson took out a Euro600 million loan early this year.