Another debut as REIT taps Hong Kong dollar market

More Cheung Kong, more property - but banks are looking at this deal in a different light.

DBS Bank is preparing to launch a ground breaking HK$1.1 billion $141 million fundraising for Fortune Reit to sub-underwriters. The borrower is sponsored by Cheung Kong and comprises five shopping malls all located in Hong Kong including Household Centre, Jubilee Court, Ma On Shan Plaza, Metropolis Mall and Smartland.

The deal is split between a HK$900 million $115 million five-year term loan and a HK$200 million $25 million five year revolving credit. Banks will receive a margin that steps up from 60bp over the first three years to 65bp for the final two years.

The financing marks a big step forward for DBS, which has also just...

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