HYSAN DEV (00014.HK): Subsidiary enters into HKD 10 billion project financing, Hang Seng and HSBC portions constitute connected transactions
NewTimeSpace News: On 4 September 2026, Hysan Development Company Limited (stock code: 00014) announced that Parkview (the Company's 60%-owned subsidiary), as the borrower, has entered into a financing agreement with the mandated lead arrangers (including Hang Seng and HSBC), the lead arrangers and the lenders. The lenders have agreed to provide their respective financing commitments to Parkview, with Hang Seng and HSBC providing HKD 1,300 million and HKD 2,200 million of financing respectively.
The total facility amounts to HKD 10,000 million, comprising three tranches: Tranche A of HKD 7,911 million green term loan (to refinance the existing Tranche A facility); Tranche B of HKD 1,089 million green term loan (to finance or refinance construction costs); and Tranche C of HKD 1,000 million green revolving loan (to finance Parkview's general working capital). Loans under Tranche A and Tranche B are repayable on the final maturity date (60 months from first utilisation of the facilities), while each Tranche C loan is repayable on the last day of its interest period and may be re-borrowed under the terms of the facility; interest is payable on the last day of each interest period at the sum of HIBOR plus a margin of 0.60% per annum. Security for the facility includes guarantees from the Company and Chinachem in proportion to their respective equity interests in Parkview (60% and 40%), a first recourse mortgage over the property and buildings, a debenture containing a first floating charge, share charges, and other security.
In respect of the connected transactions, as Hang Seng holds approximately 24.64% of the issued shares of Barrowgate, an indirect non-wholly-owned subsidiary of the Company (being a substantial shareholder thereof), and HSBC is the holding company of Hang Seng, both Hang Seng and HSBC are connected persons of the Company, and the Hang Seng financing and HSBC financing constitute connected transactions of the Company. As the relevant percentage ratios exceed 5%, but given that (i) the transactions are between the Company and a connected person at the subsidiary level, and (ii) the Board (including the independent non-executive directors, excluding Ms. Chung Hau Yee who abstained from voting) has confirmed that the terms are fair and reasonable, on normal commercial terms, in the ordinary and usual course of business of the Group, and in the interests of the Group and its shareholders as a whole, the Hang Seng financing and HSBC financing are only subject to the announcement and reporting requirements under Rule 14A.101 of the Listing Rules, and are exempt from the circular, independent financial advice and shareholders' approval requirements. Ms. Chung Hau Yee, an independent non-executive director who is also a director of Hang Seng, voluntarily abstained from voting.
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