Hong Kong builder Lai Sun seeks more bank support to refinance US$446 million loan
The property firm – controlled by local tycoon Peter Lam – has secured commitments from nine out of the original 19 lenders for the five-year refinancing, said the people, who declined to be identified discussing private matters. The existing loan matures on October 5, according to Bloomberg-compiled data.
Even if Lai Sun doesn't manage to secure the target amount from all banks, it could still opt to partially repay the loan and refinance the rest, the people said.
Lai Sun's financing challenges underscore the depth of Hong Kong's years-long property downturn, which has made banks cautious about lending to developers in the city. The company has already spent longer on its deal than property giant New World Development took to complete its recent record loan refinancing, a process that only materialised after months of negotiations and meetings between banks and regulators.
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Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city
Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city
Lai Sun's original loan was backed by its Cheung Sha Wan Plaza office tower and shopping centre in Kowloon, and the refinancing would be too. The company has proposed an all-in pricing of about 160 basis points over the Hong Kong interbank offered rate for the refinancing, the people said.
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