Sun Hung Kai Properties (0016) is seeking a five-year term loan valued at a minimum of HK$5 billion, according to Bloomberg.
There is a possibility of increasing the loan amount depending on the bank's response, Bloomberg cited people familiar with this matter said.
SHKP expects to complete the transaction by the end of March. The negotiations with the lender are still ongoing and the terms may change.
SHKP shares rose 2.33 percent on Tuesday, closing at HK$123.1.
This marks SHKP' return to the market after skipping last year's annual refinancing. SHKP typically seeks syndicated loans annually, with few exceptions in the past decade.
The company did not raise funds last year, possibly due to declining asset valuation and weak investor sentiment, which made refinancing particularly challenging, according to Bloomberg. However, this loan could signal a potential recovery in Hong Kong’s property market.
In 2024, SHKP received HK$23 billion in loans from 23 banks, which was oversubscribed by nearly five times.
