Hong Kong’s Airport eyes $2.6b loan for third runway

Hong Kong’s Airport Authority is in talks with banks for a HK$20b loan to help fund the city’s third runway, according to people familiar with the matter. The five-year facility, which is also meant for general corporate purposes, offers an interest margin of 72 basis points over the Hong Kong interbank offered rate and a top-level all-in of 82 basis points, said the people who are not authorized to speak publicly and asked not to be identified. A spokesperson for Airport Authority said Wednesday it faces a “significant shortfall in revenue because of the traffic plummet” and “will go to the financial market in the next two months to raise the necessary funds, in order to maintain its own liquidity for funding the airport operation and the committed capital projects.” The loan will also be used to finance a new relief package of up to HK$2b aimed at easing liquidity pressure for airlines and aviation support service operators, according to the release.<br/>