Airport Authority Hong Kong signs five-year loan facilities
AAHK has secured $4.5 billion in loan facilities which will be used to fund the Three Runway System project and general corporate purposes.
Airport Authority Hong Kong (AAHK) has announced that it has signed five-year HK$35 billion ($4.5 billion) loan facilities with 21 local and international banks. The facilities comprise a term loan tranche of HK$17.5 billion ($22.25 billion) and a revolving credit facility tranche of the same amount.
The all-in pricing of 82 basis points over Hong Kong Inter-Bank Offered Rate (HIBOR) is among the lowest interest rate for club or syndicated bank loan deals with the same tenor since the outbreak of COVID-19. The facilities will be used for funding AAHK’s capital expenditure, including that of the Three-runway System (3RS) project and for general corporate purposes.
AAHK originally launched the facilities at HK$20 billion ($2.5 billion). However, due to receiving overwhelming demand from the banks, and considering AAHK’s coming funding requirements, the authority decided to increase the amount of the facilities to HK$35 billion.
Chairman of Airport Authority Hong Kong, Jack So, said, “We are very pleased with the financial community’s overwhelmingly positive response towards our term and revolving credit facilities amidst the coronavirus pandemic. This support demonstrates their confidence in the AA and the long-term development prospects of Hong Kong International Airport. Much more than a financial instrument, the facilities represent the global banking community’s faith in Hong Kong’s future.”
He continued: “The pandemic crisis has not distracted us from our long-term vision of securing the airport’s position as a leading international aviation hub, for which the development of the 3RS holds the key. The project is progressing well, and we are on track to commence operation of the third runway in 2022 and the entire 3RS in 2024.”