Fixed line operator HKBN has completed a HK$4.1 billion ($522.6 million) refinancing of term and revolving credit facilities with various local and international banks to lower its cost of funding.
The company worked with lead arranger and bookrunner BNP Paribas to amend and extend its existing credit facilities. The refinancing was supported by the majority of HKBN's creditors, with the remainder to be replaced with existing and new lenders.
With the refinancing, HKBN's debt maturity has been extended from November 2021 to May 2023, and the cost of debt has been lowered from the Hong Kong interbank offered rate (HIBOR) plus 1.35% to HIBOR plus 1.05%.
“This refinancing will provide great benefits for our Co-Owners and our shareholders over the next five years,” HKBN CFO Andrew Wong said.
“The success of this transaction clearly demonstrates the high quality of HKBN’s assets, our ability to generate free cash flow and the strength of our long-standing banking relationships.”
Participating banks included a range of local and international institutions such as Industrial and Commercial Bank of China, Hang Seng Bank, Citigroup Global Markets Asia and Bank of Taiwan (Hong Kong).
First published in Computerworld Hong Kong