HK’s top developer gets HK$20 billion loan at multi-year low rate
Sources say the deal pays an interest margin of 60 basis points over the Hong Kong Interbank Offered Rate
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[HONG KONG] Hong Kong’s largest developer Sun Hung Kai Properties has secured a HK$20 billion (S$3.3 billion) bank loan at its lowest borrowing cost in years, said sources.
The five-year loan, to be used for refinancing, was initially offered at HK$5 billion with expectations that it may grow if demand was strong, sources said, asking not to be identified discussing private matters.
In the end, banks pledged as much as HK$26 billion, they noted.
The banks offering the loan include Bank of China (Hong Kong), DBS, HSBC and OCBC. The deal, to be completed in April or May, pays an interest margin of 60 basis points over the Hong Kong Interbank Offered Rate (Hibor), sources added.
Strong bank support for the deal adds to evidence that Hong Kong’s housing market is recovering after years of weakness. Mainland Chinese buyers have been purchasing heavily in the city, helping developers to clear unsold units.
What began as a test of sentiment has become a clear sign that creditors are embracing the broader property rebound in the city.
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A Sun Hung Kai Properties spokesperson declined to comment.
More housing buyers may flock to leading Hong Kong developers’ mass residential units if interest rates keep falling. The benchmark one-month Hibor rate stood at 2.13 per cent on Wednesday (Mar 25), down from 3.08 per cent in the beginning of the year.
The developer, which primarily builds and operates properties in Hong Kong and mainland China, typically seeks syndicated loans annually and has rarely skipped fundraising in the past decade.
But the firm did not pursue a deal in 2025, as declining asset values and weak investor sentiment weighed on the real estate market. BLOOMBERG
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