MTR Corporation said it has signed a HK$30 billion seven-year syndicated green term loan facility, the largest of its kind by a Hong Kong company in Asia, the Middle East, and North Africa, and that it is open to partnership for the Northern Link.
The facility, which garnered exceptional market reception with commitments from 42 banks headquartered across Asia, the Americas, Australia, Europe and the Middle East, was more than 5 times oversubscribed, the local railway operator said in a statement on Tuesday.
Prior to the launch of a general syndication process, the mandated lead arrangers, bookrunners and underwriters underwrote over HK$58 billion amount of the loan, MTRC said, adding that it raised the loan size from HK$23 billion to HK$30 billion following the overwhelming response.
In addition to the syndicated loan facility, the rail firm had also entered into an agreement with Korea Development Bank on a HK$780 million seven-year bilateral green revolving credit facility. Last year, MTRC also issued its inaugural offshore-yuan-denominated green bond of 4.5 billion yuan (HK$4.92 billion).
“This milestone is not only an accomplishment in financing, but also a strong vote of confidence in MTR’s future growth and our unwavering commitment to sustainable development,” chief executive Jacob Kam Chak-pui said at the signing ceremony.
Jacob Kam said the facility reinforces MTR’s robust financial position, enabling the Corporation to continuously implement its sustainability strategy and expand network coverage that will further contribute to Hong Kong’s long-term strategic and sustainable development.
MTRC has played an active role in shaping local development and building low-carbon communities through its railway network for decades, Kam said, adding that facilities like this loan are essential to its success as the company has marched in a new phase of growth with multiple mega projects proceeding in full steam.
Kam noted that MTR is committed to delivering the projects, including the Northern Link – the backbone of transportation for the Northern Metropolis, which is poised to become Hong Kong’s new growth engine.
The company is also open to partnering with strategic investors to jointly drive the project forward and contribute to the development of the Northern Metropolis, Kam said.
Finance director Michael Fitzgerald added that the firm will continue to practise prudent financial management to deliver long-term financial sustainability.
The syndicated green term loan facility received overwhelming response from the banking community, with 15 international banks mandated as Mandated Lead Arrangers, Bookrunners and Underwriters and 42 international financial institutions participating as lenders.
