Hong Kong’s second-largest public housing builder has secured its biggest syndicated loan arrangement of HK$12 billion (US$1.54 billion) to boost its cash flow for its coming public housing estate, while selling noncore commercial facilities to finance its projects.
The Hong Kong Housing Society’s Thursday announcement of the deal with 12 local and international banks, followed the Urban Renewal Authority’s issuance of HK$12 billion senior bonds a month ago, with the order book reaching more than HK$22.8 billion.
The society added the deal, spanning a five-year term and revolving syndicated loan facilities, included a HK$3 billion social tranche.
Chairman Walter Chan Kar-lok pledged to make the best use of the money, saying the loan showed the banking community’s support for the organisation’s development and the city’s future.
“The loan facilities will be used for bolstering the business development of the Hong Kong Housing Society, particularly the construction of subsidised housing projects,” Chan said.
