CKI Obtains HK$3.8 billion Loan Facility
- Funds to Aid Expansion in the PRC-

15 September, 1997 - Hong Kong

Cheung Kong Infrastructure Holdings Limited's (CKI's) first syndicated loan facility, a 5-year HK$3.8 billion Term/Revolving Loan Facility, has been met with warm response from the financial community.

An arrangers group for the loan facility has been successfully formed with 16 reputable banks from North America, Europe and Japan. The Lead Arrangers are: BA Asia Ltd; CIBC CEF; Paribas Asia Ltd; The Sumitomo Bank, Ltd; Banque Nationale de Paris, Hong Kong Branch; The Dai-Ichi Kangyo Bank, Ltd, Hong Kong Branch; The Industrial Bank of Japan, Ltd, Hong Kong Branch and Standard Chartered Bank.

The Arrangers are: Banca Commerciale Italiana, Hong Kong Branch; The Bank of Tokyo-Mitsubishi, Ltd; The Fuji Bank, Ltd; The Long-Term Credit Bank of Japan, Ltd; and The Sakura Bank, Ltd.

The Co-Arranger and Lead Manager is The Sanwa Bank, Ltd, Hong Kong Branch; and the Co-Lead Managers are The Daiwa Bank, Ltd, Hong Kong Branch and The Tokai Bank, Ltd, Hong Kong Branch.

The loan facility, guaranteed by CKI, comprises two tranches. Tranche A is a HK$2 billion term loan, while Tranche B is a HK$1.8 billion 2-year revolving credit, at the end of which the outstanding amount will be converted to a term loan. The facility will be used for general corporate funding requirements. The interest margin is 0.39% over HIBOR per annum.

According to Mr H L Kam, Group Managing Director of Cheung Kong Infrastructure Holdings Ltd, "We are pleased with the support of the financial community, and also with the favourable terms of the facility."

"Since the establishment of CKI in May 1996, we have become the largest listed infrastructure company in Hong Kong in terms of market capitalisation. In addition, we have received an "A-" credit rating from Standard & Poor's, as well as becoming a constituent stock of the Hang Seng Index," continued Mr Kam.

The funds acquired from the loan facility will assist in fuelling CKI's growth and expansion. Since its listing in July 1996, CKI has grown into a diversified infrastructure company with interests in 714 km of roads and bridges, 5,305 MW of power stations and over 1 million tonnes per day of water processing capacity in Hong Kong and China, as well as market-leading infrastructure materials businesses in Hong Kong.

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