Dec. 10 (Bloomberg) -- Sun Hung Kai Properties Ltd., Hong Kong’s second-biggest developer by value, more than doubled the size of its syndicated loan to HK$13.8 billion ($1.78 billion) on strong demand from lenders, according to three people familiar with the matter.
The developer was originally seeking to raise HK$5 billion via the self-arranged term facility and increased the size after 12 banks joined as senior lenders, the people said, asking not to be identified because the details are private. It’s now marketing the facility to other banks, the people said.
The joining lenders are Bank of China Hong Kong, BNP Paribas SA, Bank of Tokyo-Mitsubishi UFJ Ltd., China Construction Bank Corp., Credit Agricole SA, Hang Seng Bank Ltd., HSBC Holdings Plc, Mizuho Bank Ltd., Oversea-Chinese Banking Corp., Sumitomo Mitsui Banking Corp., Standard Chartered Plc and United Overseas Bank Ltd., the people said.
The facility offers a top-level all-in rate, which includes interest and fees, of 128 basis points over the Hong Kong interbank offered rate for pledges of HK$200 million and above, the people said. The company plans to use the proceeds for general corporate purposes, they said.
“The current syndicated loan is new money for replenishment of our general working capital,” Brenda Wong, a Hong Kong-based spokeswoman for Sun Hung Kai, wrote in an e-mailed response to questions. She declined to comment further on the terms of the loan.
The financing is the company’s second Hong Kong dollar syndicated loan after completing a HK$15.2 billion refinancing in March which was the city’s fourth biggest deal in 2013, according to data compiled by Bloomberg.
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