West Kowloon signs landmark $3b financing deal, eyes bond issuance

The West Kowloon Cultural District Authority has secured a HK$3 billion, 10-year bank financing agreement with ICBC (Asia), marking one of the longest loan tenors of its kind among local public bodies.

Authority chairman Bernard Charnwut Chan said the decade-long facility reflects strong confidence from the banking sector in West Kowloon’s direction in promoting arts and cultural development as well as industry growth.

The 10-year term significantly exceeds that of similar loans typically granted to local public organizations, underscoring lenders’ recognition of the district’s long-term development potential, he said.

Chan also revealed that the authority is exploring additional financing channels, including the possible launch of a medium-term note program modeled on those adopted by other public entities. Under the proposed framework, the authority would be able to issue bonds in tranches according to funding needs, with a total ceiling of US$1 billion.

Beyond financing arrangements, Chan addressed public attention over the timeline for land development in the district.

He said preparatory work for the tendering of a proposed residential development project in Area 2B is progressing, with the authority working intensively to finalize tender conditions.

He expects the project to be ready for tender within the year, though the actual timing will depend on market conditions.

Chan emphasized that while the authority aims to complete tender preparations as soon as possible, land sales are not a short-term revenue solution. He said the authority will not rush the process simply to align with the government’s timetable, adding that generating income through land sales will take time.