Hong Kong secures HK$5bn revolving credit facility

Airport Authority Hong Kong (AA) has signed a five-year HK$5bn ($650m) revolving credit facility with 21 local and international banks, a successful placing that lays the “solid foundation” for financing the hub’s three-runway system.
Hong Kong, handling 4.4m tonnes, was the largest non-integrator air cargo hub in 2014. 
AA chairman Jack So Chak-kwong said: “Our credit facility was oversubscribed 3.4 times, with 21 banks contributing towards a total initial commitment of HK$17.01bn. These figures stand as a testament to the financial world’s confidence in the AA, our fiscal strength and the long-term prospects of Hong Kong International Airport.”
The finalised all-in pricing of 80 basis points over Hong Kong Inter-Bank Offered Rate (HIBOR) represents the lowest interest rate among club or syndicated bank loan deals with the same tenor over the past 48 months in Hong Kong market. The facility will be used for general corporate purposes.
Mr So added, “The success of this revolving credit facility will also lay a solid foundation for financing the Three-runway System (3RS). HKIA beats at the heart of Hong Kong’s economy, and its expansion into a 3RS will bring tremendous social and economic benefits.
"With the backing of the financial community, and the support of our partners and the airport community, we are confident that we can overcome any issues related to. This credit facility represents the global banking community’s faith in Hong Kong’s future, and the continued bright prospects of our city and our airport.”
The AA’s unaudited interim financial results for the six months ended September 30  2015 saw turnover increase 14.7% over the same period last year to HK$9.2bn in the first half of fiscal 2015/2016, while the profit attributable to the equity shareholder was HK$4.7bn.