Longfor Properties Said to Meet Banks for HK$2 Billion Loan
Longfor Properties Co. (960), the developer controlled by China’s richest woman Wu Yajun, will meet with loans bankers in Hong Kong tomorrow as it seeks to borrow the equivalent of HK$2 billion ($258 million) in a three- year term loan, according to a person familiar with the matter.
The Beijing-based company hired Bank of East Asia Ltd., HSBC Holdings Plc, Hang Seng Bank Ltd. and Standard Chartered Plc to help arrange the facility, said the person, who asked not to be identified because the details are private. The proceeds of the loan will be used for general working capital purposes, the person said.
Longfor has the equivalent of about HK$11 billion of loans and bonds maturing before the end of 2016, according to data compiled by Bloomberg. It signed a HK$2.15 billion loan in April 2010 which matures in 2014, the data show. That facility pays a margin of 285 basis points, or 2.85 percentage points, more than the Hong Kong interbank offered rate.
Two calls to Rita Zhang, a Beijing-based investor relations director at Longfor, seeking comment on the financing went answered.
Longfor is offering to pay a margin on its latest borrowing of about 400 basis points more than Hibor and a so-called all-in fee of about 500 basis points, the person said. Banks can fund in either U.S. or Hong Kong dollars, the person said.
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