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APAC Chart of the Week: HK property-linked loan activity continues to improve; 4Q20-to-date volume exceeds entire 4Q19 figure

APAC Chart of the Week: 8th December 2020

The volume of syndicated and club loans raised by Hong Kong-based property developers and for real-estate developments in the SAR continued to improve in 4Q20-to-date, already exceeding that in entire 4Q19.

The amount of such borrowings so far in 4Q20 was USD 5.81bn-equivalent across 13 deals, a 31.8% increase in volume from the USD 4.40bn via nine deals recorded for entire 4Q19. Loan activity in the sector picked up in 3Q20, registering USD 6.07bn from 15 deals, after four consecutive quarterly declines in volumes since 3Q19. The sector recorded volumes of USD 6.66bn in 3Q19, USD 2.92bn in 1Q20 and just USD 1.15bn in 2Q20.

Loans linked to residential plots on the former Kai Tak Airport area accounted for 28.2% of the total 15.95bn closed in 2020 YTD from 38 transactions. During the same period last year, they contributed 9.9% to the overall USD 21.37bn via the same number of deals.

Last month, Rich Fast International Ltd signed a HKD 5bn four-year loan guaranteed by Kaisa Group Holdings Ltd which partly refinanced a loan that funded the purchase of a Kai Tak land parcel from Goldin Financial Holdings Ltd. Kaisa is currently looking to close a separate HKD 4.015bn 4.5-year loan for its first residential-development project in Hong Kong - at Castle Peak Bay in Tuen Mun. 

Jason Huang-Jones APAC Data Manager Debtwire
Jason Huang-Jones APAC Data Manager Debtwire

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