China Resources Land Ltd. signed a loan for the equivalent of HK$1.3 billion ($167 million) after initially seeking HK$1 billion, according to a person familiar with the matter.
The loan was split into a Hong Kong dollar-denominated part and a yuan-denominated portion. The former pays an interest margin of 175 basis points more than the Hong Kong interbank offered rate while the latter pays a fixed rate of 2.75 percent, the person said, asking not to be identified as details are private.
DBS Bank Ltd., which coordinated and arranged the loan, lent HK$500 million. Agricultural Bank of China Ltd. supplied HK$500 million and Nanyang Commercial Bank Ltd. lent the equivalent of HK$300 million, split equally between Hong Kong dollars and yuan, the person said.
Proceeds from the two-year facility will be used for refinancing and general corporate funding requirements, with this being the first Hong Kong dollar and yuan dual-currency loan for the borrower, the person said. The loan was signed on Jan. 12, according to the person.