MTR said to seek $1.9b loan amid special dividend plans
Hong Kong railway operator MTR Corp. is seeking a HK$15 billion ($1.9 billion) syndicated loan, people with knowledge of the matter said, just two weeks after shareholders approved a special dividend to be paid with borrowed money.
The facility will be split equally between a three-year bullet loan and a five-year revolver, the people said, asking not to be identified as the information is private. BOC Hong Kong Holdings Ltd., Bank of Tokyo-Mitsubishi UFJ Ltd., HSBC Holdings Plc and Mizuho Financial Group Inc. are the mandated lead arrangers for the deal, according to the people.
MTR's borrowing will add to the current $58.8 billion loan pipeline in North Asia, according to data compiled by Bloomberg. Hong Kong companies have raised HK$17.7 billion of syndicated loans so far this year, the data show. The bullet loan tranche will have an interest rate of 54 basis points more than the Hong Kong interbank offered rate.