WEDNESDAY, OCTOBER 1, 1975
JONG KONG GETS US$60 MILLION EURODOLLAR LOAN FACILITY *******
THE HONG KONG GOVERNMENT WILL TOMORROW CONCLUDE AN AGREEMENT WITH A CONSORTIUM OF INTERNATIONAL BANKS FOR A LOAN FACILITY OF
THE LEGISLATIVE US$60 MILLION, EQUIVALENT TO ABOUT HK$300 MILLION. COUNCIL PASSED A RESOLUTION AUTHORISING BORROWING UP TO THIS AMOUNT THIS AFTERNOON.
A GOVERNMENT SPOKESMAN SAID THIS EVENING THAT THE LOAN MAY BE DRAWN DURING THE NEXT TWO YEARS, IN STAGES IF REQUIRED, AND WILL EE USED FOR GENERAL REVENUE PURPOSES. IT WILL BE REPAYABLE IN FIVE YEARS' TIME OR EARLIER IF THE GOVERNMENT WISHES.
THE LENDING CONSORTIUM COMPRISES SEVEN BANKS OF MAJOR INTERNATIONAL STANDING. IT IS LED BY THE HONGKONG AND SHANGHAI BANKING CORPORATION AND THE OTHER MEMBERS ARE IRVING TRUST COMPANY, THE NATIONAL WESTMINSTER BANK GROUP, THE ROYAL BANK OF CANATA, COMMERZBANK INTERNATIONAL S.A., DRESDNER (SOUTH EAST ASIA) ITD. (A MEMBER OF THE DRESDNER BANK GROUP) AND STANDARD AND CHAR ERED BANKING CROUP LTD.
THE SPOKESMAN SAID THAT THE INTEREST RATE PAYAJLE BY THE GOVERNMENT ON ITS DRAWINGS WILL BE 1-1/4 PER CENT A) OVE THE LONDON INTERBANK OFFERED RATE (LIBOR) DURING THE FIRST THREE YEARS OF THE AGREEMENT PERIOD AND 1-3/8 PER CENT ABOVE LIDOR DURING THE DEMAINING TWO YEARS.
+THESE TERMS INDICATE THAT THE HONG KONG GOVERNMENT HAS BEEN GIVEN A GOOD RATING IN ITS FIRST APPROACH TO THE INTERNATIONAL MARKET,+ THE SPOKESMAN ADDED.