Yanlord Land (HK) has signed a US$1.1 billion syndicated loan facility, comprising an US$805 million term loan and a US$295 million revolving credit. The facility was oversubscribed 1.4 times, allowing the company to increase the size to US$1.1 billion from the original US$860 million.
A syndicate of 24 banks across Asia participated in the deal, with CMB Wing Lung Bank, DBS Bank, Hang Seng Bank, Shanghai Pudong Development Bank, Standard Chartered Bank (Hong Kong) and The Hongkong and Shanghai Banking Corporation acting as lead arrangers and bookrunners.
The facility, available in US and Hong Kong dollars, has a term of 3.5 years at 335 basis points margin on HIBOR or LIBOR. It will be used for general corporate purposes, including repayment of existing loans.
Commenting on the deal, Yanlord Land Group chairman and CEO Zhong Sheng Jian says in a statement: “The strong support we have received from the financial institutions for the facility bears testament to their continued confidence in Yanlord’s sustainable development and solid financial position. Over the last few years, Yanlord has continued to increase its investments in high-growth cities in (China).”
Last year, the property developer, together with its joint ventures and associates, reported a 116% growth in contracted pre-sales to 55.70 billion yuan (US$8.02 billion) over the previous year. Following the resumption of economic activities in China since late February, contracted pre-sales in the country rebounded in March and grew to 29.7 billion yuan in the first half, up 65% from the same period last year.