also to provide general working capital and to support the Group's growth strategy.
The new facilities increase the average tenor of Mandarin Oriental's existing loans from
approximately three to six years. The first tranche is a five year revolving credit facility
amounting to some HK$1.7 billion (US$218 million) and the second tranche is a seven year
term loan facility amounting to some HK$1.3 billion (US$167 million).
Commenting on the new arrangements, Chief Executive Officer, Edouard Ettedgui, said,
"The new facilities not only increase significantly the average term of our bank debt, but are
also competitively priced. We are positioning Mandarin Oriental as one of the world's
leading luxury hotel brands, progressing year-on-year towards operating 10,000 rooms in
major international business centres and leisure destinations. The proceeds of this syndicated
loan will also help us further to capitalize on our luxury brand and support this growth."
The three Co-ordinating Arrangers of the facility are Standard Chartered Bank, BNP Paribas
Hong Kong Branch and The Bank of Tokyo-Mitsubishi, Ltd. The facility was substantially
oversubscribed upon closing of the general syndication.
Other banks participating in the facility are: Commerzbank Aktiengesellschaft, Hong Kong
Branch; The Sanwa Bank, Limited, Hong Kong Branch; Sumitomo Mitsui Banking
Corporation; The China & South Sea Bank, Ltd., Hong Kong Branch; The Agricultural Bank
of China, Hong Kong Branch; The Bank of East Asia, Limited; Industrial and Commercial
Bank of China (Asia) Limited; Nanyang Commercial Bank, Limited and Shanghai
Commercial Bank Ltd. as Arrangers. Co-Arrangers include Oversea-Chinese Banking
Corporation Limited and Hang Seng Bank Limited. Lead Managers are Bank of China,
Macau Branch; Bank of Communications, Hong Kong Branch; Dah Sing Bank, Limited;
Mizuho Financial Group (Fuji); Tai Fung Bank Limited; and The Yien Yieh Commercial
Bank Ltd., Hong Kong Branch.
Mandarin Oriental is an award-winning international hotel investment and management group with a portfolio of 21 deluxe and first class hotels worldwide, including two hotels under
development, one in New York (opening early 2004) and the other in Tokyo (opening 2006).
The Group has equity interests in most of its properties and net assets of approximately US$1
billion at 31st December 2000. Mandarin Oriental is a member of the Jardine Matheson
Group.