Re Syndicated Loan
Hong Kong Land Hldgs Ld
8 March 2001
HONGKONG LAND SIGNS HK$6.38 BILLION SYNDICATED LOAN AND
RECEIVED A3/A- RATINGS FROM TOP RATING AGENCIES
8th March 2001 - Hongkong Land Holdings Limited today
announced that a HK$6.38 billion (US$820 million) syndicated
loan facility has been put in place. The facility is to
finance the Group's medium-term investment expenditure and to
refinance a portion of the Group's existing loan facilities.
Due to the overwhelming response, the loan amount was
increased from HK$3 billion to HK$6.38 billion. A total of 25
financial institutions participated.
The facility consists of two tranches and includes a revolving
feature in the first three years. The first tranche of
HK$4.25 billion has a maturity of 5 years, with an interest
margin of 47 basis points per annum over HIBOR. The
second tranche of HK$2.13 billion has a 7-year tenor
and the interest margin is 55 basis points per annum over
HIBOR.
The facility, which has been entered into by The Hongkong Land
Property Company Limited, a wholly-owned subsidiary, is
unsecured.
Commenting on the completion of the syndication, Mr Nicholas
Sallnow-Smith, Chief Executive of Hongkong Land, said, 'We are
delighted with the overwhelming response to the syndication
from so many leading banks. The loan will provide facilities
at attractive rates for Hongkong Land's investment programme,
and will significantly extend the Group's debt maturity
profile.'
Along with the completion of the syndication, Hongkong Land
today received for the first time an 'A3' and 'A-' rating from
Moody's and Standard & Poor's respectively.
Mr Sallnow-Smith commented that achieving investment grade
ratings will provide Hongkong Land with the flexibility to tap
non-bank debt markets to diversify its funding sources.
Hongkong Land is a leading property and infrastructure
investment, management and development group. The Company
owns and manages some 5 million sq. ft of prime office and
retail space in the heart of Hong Kong's Central business
district. It is active primarily in the Hong Kong SAR,
Mainland China and Singapore, and has a portfolio of property
and infrastructure interests in other Asian cities. Hongkong
Land employs some 600 people, has its primary share listing in
London, and at end of 2000, reported shareholders' funds in
excess of US$6 billion.
For further information, please contact:
Hongkong Land Limited
Kuah Boon Wee (852) 2842 8101
Golin/Harris Forrest
Adrian Overholser (852) 2501 7937
This and other Group announcements can be accessed through the
Internet at 'www.hkland.com'.
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