Shimao Property Holdings Limited, controlled by Chinese billionaire Xu Rongmao, hired Standard Chartered Plc and HSBC Holdings Plc for a $400 million three-year loan, according to sources.
Last month, Shimao received the bondholder consents it needed to amend terms of some of its notes. According to Shimao, the changes would give it flexibility to raise more debt to take on new business opportunities. Tammy Tam, a spokesperson for Shimao, declined to give any comments on the issue.
According to a filing to Singapore’s stock exchange in Jan. 27, the bonds included the floating-rate notes amounting to $250 million, which is due in 2011, and 8 percent notes amounting to $350 million due in 2016. The facility will be released for general syndication upon the completion of loan terms, according to the sources, who declined to comment further because details are private.
According to its website, Shimao specializes in developing mid- to high-end retail, residential and office properties and owns real estate projects in China.
According to the National Development and Reform Commission, prices of commercial and residential properties in 70 Chinese cities increased 7.8 percent in December from a year earlier, the fastest pace in 18 months.