Henderson Land Development is likely to boost the size of a syndicated loan it plans to take out by 60 per cent to HK$8 billion in the face of strong demand from lenders, two banking sources said. The three-year loan, slated to close this week, will be a 'club deal' organised by the borrower, and at least 25 banks will join the transaction, according to one of the sources. The developer originally hoped to raise HK$5 billion in a syndicated loan by inviting more than 40 banks to join the fund-raising. It is paying an all-in fee of 125 basis points above the Hong Kong interbank offered rate (Hibor), according to the sources. Local and mainland banks are well committed to the loan because they have a strong relationship with the borrower. Total commitments had reached more than HK$12 billion since the deal was launched on May 19, market sources said. 'They will surely boost the loan size to accommodate the strong street demand, but I doubt that the size will reach HK$10 billion. An HK$8 billion loan is ideal for both borrower and lenders,' said a banker. 'The high participation rate signals that banks are returning to the loan market because of better pricing, and I do think other blue chips will use Henderson's pricing as a benchmark in negotiating their own refinancing.' The deal is set to be the biggest syndicated loan in the city's loan market so far this year following poor market sentiment late last year and earlier this year because of the global financial crisis. Telecommuniations operator HTIL completed a HK$5.2 billion loan facility with five banks this month. Syndicated loans in Hong Kong this year totalled US$2.12 billion as of May 25, down more than 75 per cent from US$8.53 billion in the same period a year earlier, Thomson Reuters data shows. Most banks with good relationships with borrowers prefer bilateral loans with shorter maturities and more pricing confidentiality. In Hong Kong, HSBC and Standard Chartered have most of the market share so far this year, accounting for 11.5 per cent and 11 per cent, respectively, of the loan market, compared with 5.3 per cent and 6.5 per cent a year earlier. Industrial and Commercial Bank of China increased its market share to 5.7 per cent from 3.1 per cent, while China Construction Bank Corp's share grew to 3.8 per cent from 0.8 per cent, Thomson Reuters data shows.