New World China Land Ltd. (917) hired HSBC Holdings Plc to help arrange a HK$1.5 billion ($193 million), three-year loan, according to three people familiar with the matter.
New World China Finance Ltd. is the borrowing entity and the loan is guaranteed by New World China, one of the people said, asking not to be identified because the details are private. New World China is a unit of New World Development Co., which is seeking a HK$1.9 billion, four-year facility.
A New World China spokeswoman, who declined to give her full name citing company policy, declined to comment on the loan when contacted by telephone today.
The loan pays an all-in rate that includes margins and fees of about 330 basis points over the Hong Kong interbank offered rate for commitments of HK$300 million or more, the people said. Proceeds will be used to refinance debt, they said.
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