Hutchison Nears 1st Phase Of GBP3B Loan For 3G

date: 26th December 2000

Hutchison Whampoa Ltd.'s (H.HUW) consortium Hutchison 3G UK Holdings is close to completing the first phase of a multi-billion pound syndicated loan to finance its third-generation mobile network, a source close to the company told the press.

A total transaction worth GBP3 billion has been arranged by Chase Manhattan Corp. (CMB), HSBC Holdings PLC (HBC) and WestLB (G.WLG), the source said.

A further four arrangers, comprising Merrill Lynch & Co. (MER), ABN Amro Holding NV (ABN), Citibank, part of Citigroup Inc. (C), and Royal Bank of Scotland Group PLC (RBSB), have joined the syndication.

"We have approached a number of banks. The result is that now we have another five banks committed to the deal," the source said.

The source declined to name the five banks involved, but said that one financial institution is based in the U.S., one in Japan, one in Asia and two in Europe.

"We have another 15 banks still looking at the deal," the source said, adding that pension funds and life insurers aren't involved in the syndication.

The first phase of the syndication round is expected to be wrapped in mid-to-late January, with a final round expected in the first quarter of 2001.

Hutchison Whampoa has a 65% interest in the consortium, while NTT DoCoMo Inc. (J.NTX) holds 20% and KPN Royal NV (KPN) the remaining 15%.

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