Hong Kong's Airport Authority Signs HK$35 Billion Loan Facilities with 21 Banks

The Airport Authority of Hong Kong has signed five-year HK$35 billion (over US$4.5 billion) loan facilities with 21 local and international banks.

The facilities comprise a term loan tranche of HK$17.5 billion and a revolving credit facility tranche of the same amount.

The all-in pricing of 82 basis points over Hong Kong Inter-Bank Offered Rate (HIBOR) is among the lowest interest rates for club or syndicated bank loan deals with the same tenor since the outbreak of COVID19.

The facilities will be used for funding the Airport Authority’s capital expenditure, including that of the Three-Runway System (3RS) project and for general corporate purposes.

The Airport Authority launched the facilities at HK$20 billion, but increased the amount of the facilities to HK$35 billion after receiving such a positive response from the banks.

Jack So, Chairman of the Airport Authority said, “We are very pleased with the financial community’s overwhelmingly positive response towards our term and revolving credit facilities amidst the coronavirus pandemic. This support demonstrates their confidence in the Airport Authority and the long-term development prospects of Hong Kong International Airport. Much more than a financial instrument, the facilities represent the global banking community’s faith in Hong Kong’s future. The pandemic crisis has not distracted us from our long-term vision of securing the airport’s position as a leading international aviation hub, for which the development of the 3RS holds the key. The project is progressing well, and we are on track to commence operation of the third runway in 2022 and the entire 3RS in 2024.”

Participating banks include:

Mandated Lead Arranger, Bookrunner and General Advisor
China Development Bank Hong Kong Branch
Mandated Lead Arrangers, Bookrunners and Coordinators
Bank of China (Hong Kong) Limited
Sumitomo Mitsui Banking Corporation
Australia and New Zealand Banking Group Limited
The Hongkong and Shanghai Banking Corporation Limited
Standard Chartered Bank (Hong Kong) Limited
Mandated Lead Arrangers and Bookrunners
Industrial and Commercial Bank of China (Asia) Limited
Bank of Communications Co., Ltd. Hong Kong Branch
Mandated Lead Arrangers
Agricultural Bank of China Limited Hong Kong Branch
Citi
Lead Arrangers
Chiyu Banking Corporation Limited
The Bank of Nova Scotia, Hong Kong Branch
Crédit Agricole Corporate and Investment Bank
China Everbright Bank Co., Ltd., Hong Kong Branch
CMB Wing Lung Bank Limited
Dah Sing Bank, Limited
DBS Bank Ltd.
Hang Seng Bank Limited
Mizuho Bank, Ltd.
Oversea-Chinese Banking Corporation Limited
Shanghai Commercial Bank Ltd.

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