CONFIDENTIAL
機密
XCC(75)55
19
8
Further investigation, and initial reactions to the Government's announcement of its intention to make a $250 million issue of five year bonds in the autumn, indicate that the appetite for such fixed interest bearing Hong Kong dollar denominated bonds may be greater than originally assumed.
20
In order to ensure the availability of all the funds required during the construction period, and to provide extra flexibility in the timing of approaches to the markets for longer term funds, two local and one offshore banking syndicates have been formed. Present indications are that they would provide $1,000 million and the US dollar equivalent of $2,000 million for periods of between five and seven years. The syndicates have also indicated a willingness in principle to re-finance a substantial proportion of these loans at maturity if required. Interest rates are expected to be slightly higher than previously assumed, but this is not critical to the commercial viability of the System.
21
The present forecast of the availability of residual finance is, therefore, as follows:
Market
Final Redemption
Year
Local Bonds, say
Availability (HK$ million) 200 p.a.
Interest Rate
(%)
7-10 fixed
5
Local Bank Syndicates
1000
10
5-7
International Long
Term, say International Medium
75 p. a.
10 fixed
12
Term, say International Bank
125 p.a.
91⁄2 fixed
10
Syndicate
2000
9/1/20
7
22
On this basis, the funds potentially available in 1980 could amount to about $5,000 million and, given the cash flow projection in Table 3 of Annex D, less than half of the funds that could be raised by the International Bank Syndicate is likely to be required.
CONFIDENTIAL
機
密