Airport Authority Signs HK$35 Billion Loan Facilities with 21 Banks

(HONG KONG, 23 June 2020)  –  Airport Authority Hong Kong (AA) announced today that it has signed five-year HK$35 billion loan facilities with 21 local and international banks. The facilities comprise a term loan tranche of HK$17.5 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 AA’s capital expenditure, including that of the Three-runway System (3RS) project and for general corporate purposes.

The AA launched the facilities at HK$20 billion, and received overwhelming demand from the banks. Considering the AA’s coming funding requirements, the AA decided to increase the amount of the facilities to HK$35 billion. 

Jack So, Chairman of the AA 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.”

“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,” Mr So added.

Participating banks include:

Mandated Lead Arranger, Bookrunner and General Advisor

China Development Bank Hong Kong Branch

Mandated Lead Arrangers, Bookrunners and Coordinators

Bank of China (Hong Kong) Limited

Sumitomo Mitsui Banking Corporation

Australia and New Zealand Banking Group Limited

The Hongkong and Shanghai Banking Corporation Limited

Standard Chartered Bank (Hong Kong) Limited

Mandated Lead Arrangers and Bookrunners

Industrial and Commercial Bank of China (Asia) Limited

Bank of Communications Co., Ltd. Hong Kong Branch

Mandated Lead Arrangers

Agricultural Bank of China Limited Hong Kong Branch

Citi

Lead Arrangers

Chiyu Banking Corporation Limited

The Bank of Nova Scotia, Hong Kong Branch

Crédit Agricole Corporate and Investment Bank

China Everbright Bank Co., Ltd., Hong Kong Branch

CMB Wing Lung Bank Limited

Dah Sing Bank, Limited

DBS Bank Ltd.

Hang Seng Bank Limited

Mizuho Bank, Ltd.

Oversea-Chinese Banking Corporation Limited

Shanghai Commercial Bank Ltd.