MTR said to seek $1.9b loan amid spe­cial div­i­dend plans

The Pak Banker - - COMPANIES/BOSS -

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.

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