China Resources Logic, a mainland semiconductor and air-conditioner compressor maker, has mandated five banks to help arrange a HK$1.5 billion five-year loan to replace its existing debts, sources said.
The loan facility, in the form of a club deal for participating banks, carried a tight margin of 32 basis points over Hong Kong interbank offered rate, one banker said.
'The loan is still open to other lenders if they show interest but the size is not likely to be increased,' he said.
CR Logic and other Hong Kong-listed firms are tapping the loan market, taking advantage of the low-interest rate environment.
Property developer Cheung Kong (Holdings) was also asking banks to arrange a HK$6 billion loan to help reduce interest expenses, sources said.
CR Logic, a unit of mainland conglomerate China Resources (Holdings), reported in August a 34 per cent drop in net profit for the first half of last year to HK$142.18 million due to a downturn in the compressor industry.
