URA raises $3.6b revolving credit and term loan facility

 The Urban Renewal Authority (URA) signed a $3.6 billion syndicated revolving credit and term loan facility with 12 international and local banks in Hong Kong today (Friday).

This is the first syndicated loan facility raised by the URA since its inception in May 2001.

Mr. Billy Lam, Managing Director of the URA said the facility has attracted enthusiastic response from the banking sector and was substantially oversubscribed at the general syndication stage. In view of the favourable response, the URA has decided to raise the final facility amount to $3.6 billion from $3 billion, after carefully considering its funding requirements for the next few years.

Mr. Lam said that the facility would be used for financing a number of redevelopment projects as well as refinancing part of its existing borrowings.

Mr. Barry Cheung, URA Board Member and Chairman of Finance and Administration Committee, said the loan facility formed an important part of the URA's financing strategy which also included the Government's commitment of a capital injection of $10 billion over a five year period and project financing by joint venture partners.

The facility comprises three tranches -- a three-year revolving credit and a three-year term loan of $900 million each and a five-year revolving credit/ term loan of $1.8 billion.

Participants of the facility are as follows :-

Photograph (1) shows at the ceremony were Dr Lau Wah-sum, Chairman of the URA (third from right); Mr. Barry Cheung, URA Board Member and Chairman of Finance and Administration Committee (second from right) and Mr Billy Lam, Managing Director of URA (third from left) with some of the banking representatives, including Mr Or Man Ah, Deputy Chief Executive of Bank of China (Hong Kong) Limited(second from left); Ms Rose Lee, Head of Corporate Banking of HSBC (first from right) and Mr Y.T. Ng, Deputy General Manager of Hang Seng Bank Limited (first from left).

Photograph (2) shows Dr Lau, Mr Cheung, Mr Lam and the banking representatives proposing a toast after the signing ceremony.