Henderson Land Development Co. has Approached Banks for a HK$5 Billion Loan
The Hong Kong builder controlled by Lee Shau-kee, Henderson Land Development Co. has approached banks for a HK$5 billion ($642.5 million) five-year term loan. Two people familiar with the matter said lenders committing HK$1 billion or more will receive interest and fees for a total payment of 96.5 basis points more than the Hong Kong interbank offered rate while those contributing HK$500 million up to HK$1 billion will receive a so-called all-in payment of 95 basis points.
More companies are forced by Lending curbs in China to borrow in Hong Kong. It is increasing the cost of loans as borrowers jostle for banks’ business. According to the data compiled by Bloomberg and people familiar with the matter, in June last year, Henderson borrowed HK$13.25 billion for five years after initially seeking HK$8 billion, and paid under 90 basis points more than Hibor. Bloomberg data show before the end of 2015, the company has HK$49.6 billion in loans maturing.
The people said, without elaborating that the HK$5 billion facility is also likely to be increased. The people said Proceeds will be used to refinance debt and the loan is expected to be split 70 percent and 30 percent between a revolver and a term. Banks expected to participate include Citigroup Inc., Standard Chartered Plc, Credit Agricole CIB, DBS Group Holdings Ltd., Bank of Tokyo- Mitsubishi UFJ Ltd., HSBC Holdings Plc, and Sumitomo Mitsui Financial Group Inc.