Bank of China and Standard Chartered have joined Deutsche Bank, HSBC and JP Morgan to arrange the loan, said the banker, adding that the details of the loan including volume and maturity will be discussed next week. Deutsche Bank, HSBC and JP Morgan are also working on the company’s IPO – a spin off of its hotel assets which is due to price next month.
New World said in early May that it was going to spin off its hospitality assets and list three of its Hong Kong hotels – Grand Hyatt Hong Kong, Renaissance Harbour View Hotel Hong Kong and Hyatt Regency Hong Kong—in separate vehicles.
The loan is similar in structure to the recently signed HK$6.8bn loan by Great Eagle Holdings, according to another loans banker. Great Eagle’s loan was also aimed at financing the spin-off of its luxury hotel division.