Capital Court Limited, holder of the right to manage the Hong Kong Ocean Park Marriott Hotel and a wholly-owned subsidiary of Lai Sun Development Company, signed on September 16 a four-year HK$3.6 billion (US$460 million) secured term loan facility with 18 banks.
The facility is the first green loan solely used to finance a hotel property in Hong Kong. In July this year, the facility was certified by the Hong Kong Quality Assurance Agency to be in compliance with the requirements of the Green Finance Certification Scheme – Pre-Issuance Stage Assessment, which is also in alignment with the Loan Market Association/Asia-Pacific Loan Market Association Green Loan Principles issued in 2018.
The term loan, with an interest rate of 1.20% per annum over Hibor, was substantially oversubscribed with a total commitment of HK$12.2 billion. The proceeds will be used to finance and/or refinance the development costs of the hotel.
BNP Paribas and China Construction Bank (Asia) were the green finance structuring advisers for the deal, as well as mandated coordinating arrangers and lenders, along with Industrial and Commercial Bank of China (Asia), which also acted as the facility agent and security agent.
The other banks were Bank of Communications (Hong Kong), United Overseas Bank, Bank of East Asia, DBS, Hang Seng Bank, Chong Hing Bank, Bank of China (Hong Kong), China Everbright Bank Company (Hong Kong), Sumitomo Mitsui Banking Corporation, Agricultural Bank of China (Hong Kong), Fubon Bank (Hong Kong), Nanyang Commercial Bank, Shanghai Commercial Bank, Cathay United Bank (Hong Kong), and HSBC.