At today’s signing ceremony for the Facility, with Dr Jacob Kam, Chief Executive Officer of MTR Corporation as the witness, Mr Michael Fitzgerald, Finance Director of MTR Corporation and representatives of the Mandated Lead Arrangers, Bookrunners and Underwriters (“MLABUs”) signed the agreement. The Facility garnered exceptional market reception, attracting commitments from 42 banks headquartered across Asia, the Americas, Australia, Europe and the Middle East. Prior to the launch of a general syndication process, the MLABUs underwrote over HKD58 billion amount of the Facility. The subsequent syndication phase also received overwhelming response. The final Facility was more than 5 times over-subscribed. In recognition of the strong demand, the decision was taken to upsize the Facility amount from HKD23 billion to HKD30 billion. In addition to the syndicated loan facility, the Corporation had also entered into an agreement with Korea Development Bank on a HKD780 million seven-year bilateral green revolving credit facility (the “Revolver”).
“Railway is at the heart of Hong Kong’s green transport infrastructure and a key driver of the city’s economic growth. We are very delighted that the syndicated green term loan has received an overwhelming response and support from the market. For decades, MTR Corporation has played an active role in shaping local development and building low-carbon communities through its railway network. The Corporation has marched into a new phase of growth with multiple mega projects proceeding in full steam, among those is the Northern Link. MTR will continue to adopt a forward-looking financial strategy and explore various approaches to finance the construction to underpin the strategic development of the Corporation,” said Dr Jacob Kam, Chief Executive Officer of MTR Corporation.
Dr Kam believes that the strong support from international banks will further reinforce MTR’s robust financial position, enabling the Corporation to continuously implement its sustainability strategy and expand its network coverage that will contribute to the city’s long-term strategic and sustainable growth.
Mr Michael Fitzgerald also thanked the banking community for its unwavering support. “The Facility not only reinforces the Corporation’s position at the forefront of sustainable development, it also demonstrates the shared commitment of MTR and our banking partners to Hong Kong’s future. The 9-month availability period on this Facility reflects the solid financial foundation and well-thought-out planning of the Corporation. We will continue to practise prudent financial management to deliver long-term financial sustainability for the Corporation.”
The Corporation successfully concluded its inaugural issuance of an Offshore Renminbi-denominated Green Bond in September last year, implementing a two-tranche transaction of CNH4.5 billion. In the same way as for that earlier CNH Green Bond issuance, proceeds from the Facility and the Revolver will be utilised to finance and refinance eligible green investments as defined in MTR’s Sustainable Finance Framework, signifying the continued prominence of Hong Kong as a leading international ESG finance hub, as well as contributing directly to the sustainable development of Hong Kong.
The MLABUs for the Facility include:
- Bank of China (Hong Kong) Limited
- Bank of Communications (Hong Kong) Limited (Incorporated in Hong Kong with limited liability)
- The Bank of East Asia, Limited
- China Construction Bank (Asia) Corporation Limited
- China Development Bank Hong Kong Branch
- DBS Bank Ltd.
- Fubon Bank (Hong Kong) Limited and Taipei Fubon Commercial Bank Co., Ltd.,
- Hang Seng Bank Limited
- The Hongkong and Shanghai Banking Corporation Limited
- Industrial and Commercial Bank of China (Asia) Limited
- Mizuho Bank, Ltd. (Incorporated in Japan with limited liability)
- MUFG Bank, Ltd. (Incorporated in Japan with limited liability)
- OCBC Bank (Hong Kong) Limited
- Qatar National Bank (Q.P.S.C.), Hong Kong Branch
- Standard Chartered Bank (Hong Kong) Limited
(in alphabetical order of company name)
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The issuer is solely responsible for the content of this announcement.
