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Press Release

1 August 2001

HKD4,500 million dual tranche syndicated loan signed

The Hongkong Electric Company, Limited ("HEC") announced today that it has signed a HKD4,500 million dual tranche loan facility with 18 international banks, representing HEC's major fund raising exercise in the syndicated loan market since the approval of its financial plan by the Hong Kong Government last year.

The facility, which is available for drawdown on a revolving basis during the first 30 months, comprises two tranches. The HKD3,300 million Tranche A carries an interest margin of 35 basis points per annum over the Hong Kong Interbank Offered Rate (HIBOR) and has a 7-year tenor with a Lender's Put Option at the end of Year 5. The HKD1,200 million Tranche B carries an interest margin of 40 basis points per annum over HIBOR and has a 7-year tenor with bullet repayment. The proceeds of the facility will be used for HEC's general corporate funding requirements.

The solid operation, prudent management policies and the stable performance of HEC have made the company one of the best credit in town, and is evidenced by the strong support from the 18 international banks which joined the syndicate. HEC had originally planned to raise HKD2,500 million but increased the loan to HKD4,500 million after excellent responses from banks at both the underwriting and the general syndication stages.

The list of participating banks is as follows:

Co-ordinating Arrangers & Lead Arrangers

Barclays Capital and Barclays Bank PLC
Mizuho Financial Group(The Dai-ichi Kangyo Bank, Limited, The Fuji Bank, Limited and The Industrial Bank of Japan, Limited)
Standard Chartered Bank
The Bank of Tokyo-Mitsubishi, Ltd.
Crdit Agricole Indosuez
National Australia Bank Group
UFJ Group (The Sanwa Bank, Limited and The Tokai Bank, Limited)


The Agricultural Bank of China, Hong Kong Branch
Banco di Napoli S.p.A., Hong Kong Branch
Bank of Communications, Hong Kong Branch

Lead Managers

Industrial and Commercial Bank of China (Asia) Ltd.
Banca di Roma S.p.A. - Hong Kong Branch


E. Sun Commercial Bank, Ltd., Offshore Banking Branch
Tai Fung Bank Limited, Macau
UniCredito Italiano S.p.A., Hong Kong Branch

Facility Agent

Barclays Bank PLC