HONG KONG— Cheung Kong Holdings and Hutchison Whampoa Ltd. , Hong Kong billionaire Li Ka-shing ’s two biggest companies, have asked bankers to commit to a HK$55 billion (US$7.1 billion) loan by March, the biggest in Asia outside Japan in almost two years.
In a meeting Monday held in Hong Kong’s Harbor Grand Hotel, also owned by Mr. Li, bankers were asked to submit commitment letters for the loan to finance the billionaire’s spinoff of his real-estate assets from the two companies, people with direct knowledge of deal said Tuesday.
At a value of US$7.1 billion, the loan would be the biggest in the region outside Japan since Chinese e-commerce giant Alibaba Group borrowed US$8 billion from 22 banks in April 2013, according to data provider Dealogic.
The meeting with top management of Cheung Kong and Hutchison was attended by more than 100 bankers from about 40 banks, including Chinese, Japanese and European banks, the people said. Cheung Kong owns 49.97 per cent of Hutchison.
The three-year loan that Mr. Li’s companies seek will be in two tranches, one denominated in Hong Kong dollars and the other in U.S. dollars, the people said.
The 86-year-old tycoon is reorganizing his empire into two companies, separating his Hong Kong property assets from his internationally focused conglomerate.
In a Jan. 9 stock-exchange filing, Cheung Kong and Hutchison said Cheung Kong Property Holdings, the company created from the real-estate assets stripped out, will seek a loan worth HK$55 billion from banks. The filing said the loan would come from either Bank of America Merrill Lynch and HSBC Holdings PLC, which is advising on the reorganization, or the loan could be syndicated. A syndicated loan is one that involves a group of lenders.