$23b loan 'vote of confidence in SHKP'

Sun Hung Kai Properties (0016) has signed a five-year HK$23 billion credit facility with 23 lenders including BOC Hong Kong (2388), with part of the proceeds going towards debt refinancing.

The facility was oversubscribed nearly five times.

Chairman Raymond Kwok Ping-luen said: "This overwhelming response is a very strong vote of confidence in SHKP and the future of Hong Kong. We will use part of the facility's proceeds to refinance some of our debts, with the remainder held as working capital for coming business developments."

SHKP didn't mention the debt's interest rate.

One of Hong Kong's leading developers, SHKP's net rental income is estimated to exceed HK$19.2 billion in the financial year 2023/24. One of its focal projects is the office towers of the mega High-Speed Rail West Kowloon Terminus Development, which will be named the International Gateway Centre. UBS will lease one of them as its Hong Kong headquarters.

The other lenders for the loan include The Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China (Asia) and Standard Chartered Bank (Hong Kong).

June Chen