Citic Pacific Said to Plan to Increase Loan to HK$6 Billion

Citic Pacific Ltd. (267), a Hong Kong-based steelmaker with operations in iron ore mining and property development in China, plans to increase a loan to at least HK$6 billion ($773 million), according to a person familiar with the matter.

The three-year facility will be marketed to other lenders in general syndication later this month, the person said, asking not to be identified because the details are private. Citic Pacific originally sought a loan of HK$3 billion to HK$4 billion and the size may be increased even further depending on bank commitments, the person said.

Marjorie Law, a Hong Kong-based spokeswoman at Brunswick Group LLP, which handles media relations for Citic Pacific, didn’t reply to an e-mail seeking comment on the financing.

Proceeds will be used for the company’s iron ore project in Australia, the person said. Citic Pacific arranged a visit for bankers to its sites in the country last month, another person familiar with the matter said at the time.

Banks arranging the loan include Australia & New Zealand Banking Group Ltd., Bank of China Ltd. (Hong Kong), HSBC Holdings Plc, Bank of Tokyo-Mitsubishi UFJ Ltd., China Construction Bank Corp., Hang Seng Bank Ltd., DBS Bank Ltd. and Industrial & Commercial Bank of China Ltd., the person who spoke today said.

Oversea-Chinese Banking Corp., United Overseas Bank Ltd. and another two banks have also joined to help organize the borrowing, the person said, declining to elaborate further.