Airport Authority Hong Kong signs HK$5 billion syndicated loan
28-Jun-2010 Airport Authority Hong Kong signs HK$5 billion syndicated loan with lowest interest rate since financial tsunami
Airport Authority Hong Kong (AA) today announced it had successfully self-arranged a five-year, HK$5 billion revolving credit facility with 14 local and international banks. A signing ceremony attended by representatives from the participating banks and the AA took place today.
At an all-in cost of 50 basis points over Hong Kong Inter-Bank Offered Rate (HIBOR), representing the lowest paid by a Hong Kong borrower in the loan syndication market since the financial tsunami in 2008, the facility will be used to refinance maturing debt and for general working capital purposes.
Commenting on the syndication, AA Chief Executive Officer Stanley Hui Hon-chung said, "We began inviting banks to participate in the revolving credit facility in May. Despite the difficult market conditions caused by the sovereign debt crisis in Europe, and the uncertain economic outlook worldwide, we are delighted to have received an enthusiastic response. This demonstrates the AA's longstanding relationship with the participating banks, its sound capital position and prudent financial management, and the banking industry's strong confidence in the future of HKIA."
Mr Hui added that the ongoing surge both in the airport's aeronautical and non-aeronautical business underlines its promising outlook. HKIA's air cargo tonnage has been on the rise since October 2009 and returned to pre-crisis level in May 2010, setting a new monthly record of 367,000 tonnes. Passenger throughput and air traffic movement also registered healthy growth, rising 14.4% and 8.4% respectively last month.
The AA has been an active participant in the Hong Kong loan syndication market since 1994. Mr Hui said the new revolving credit facility will help support further airport development and maintain HKIA's competitiveness as a leading international and regional aviation centre.
List of Participating Banks:
Australia and New Zealand Banking Group Limited
Banca Monte dei Paschi di Siena S.p.A.(Hong Kong Branch)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Chong Hing Bank Limited
Commonwealth Bank of Australia
DBS Bank Ltd.
Hang Seng Bank Limited
The Hongkong and Shanghai Banking Corporation Limited
Mizuho Corporate Bank, Ltd.
Oversea-Chinese Banking Corporation Limited
Scotiabank (Hong Kong) Limited
Standard Chartered Bank (Hong Kong) Limited