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Airport Authority Hong Kong arranges USD772.5 million credit facility

Analysis

(CAPA) Airport Authority Hong Kong announced it has successfully

arranged a three-year, USD772.5 million revolving credit facility with 14 local

and international banks. Proceeds will be used to refinance maturing debt and

for general working capital purposes.

In early Sep-07, the Airport Authority invited banks to participate in a USD515 million revolving credit facility. Market response was enthusiastic, with banks committing USD927 million. As a result, the Airport Authority increased the size of the facility to USD772.5 million.

At an all-in cost of 14 basis points (0.14%) over the Hong Kong Inter-Bank Offered Rate, the terms of the self-arranged facility are among the best in the market, according to Airport Authority Hong Kong.

"Despite the effects of the global credit crunch, the facility was enthusiastically received by both local and international banks. We are most grateful to our bankers for their unwavering support," the Airport Authority's Finance Director, Raymond Lai, said. "The favourable result also reflects the Airport Authority's strong capital position, superior credit standing and prudent financial management."

The Airport Authority's long-term local and foreign currency debt is rated AA by Standard & Poor's, the same rating as the Government of the Hong Kong Special Administrative Region.

Banks participating in the revolving credit facility:

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