Citic Pacific Ltd. (267) is offering to pay an all-in rate of about 280 basis points more than the Hong Kong interbank offered rate for a loan of at least HK$3 billion ($387 million), two people familiar with the matter said.
The loan will be used for investment in an iron ore project in Australia, according to the people said, who asked not to be identified because the details are private. Citic Pacific arranged a visit for bankers to its sites in the country earlier this month, they said.
Citic Pacific, based in Hong Kong, has given banks until about April 20 to respond with commitment proposals, the people said. The loan may be as much as HK$4 billion, depending on how much lenders commit, they said.
Marjorie Law, a spokeswoman at Brunswick Group LLP, which handles media relations for Citic Pacific, wasn’t immediately available to comment on the financing when reached by telephone in her Hong Kong office.
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