Hutchison Port Holdings, which is the largest port operator in Hong Kong and the world, is planning to arrange a HK$5 billion (US$644 million) syndicated loan to refinance its 88 % share of Hongkong International Terminals (HIT). HIT is one of several key container port operators in the Port of Hong Kong.

The mandate was awarded in early August to seven arranger banks - Citibank, HSBC, BNP Paribas, ICBC (Asia), Standard Chartered Bank, Bank of China (Hong Kong) and Bayerische Landersbank.

According to sources, Bayerische Landersbank would act as the facility agent, while the other banks had been mandated as book-runners for the facility. The loan, with the conglomerate acting as guarantor for HIT, is likely to have a five-year term with the funds earmarked for refinancing purposes.

The financing deal is seen as a pure refinancing move timed to take advantage of low interest rates available in the markets.

HIT is projected to move 5 % more traffic than last year.

There is also intense market speculation that Hutchison is planning to issue a US-dollar bond worth between US$1 billion and $1.5 billion. HSBC, Goldman Sachs, UBS and Merrill Lynch were said to be bidding for the mandate.