Modern Terminals Refinances its HK$2.6 Billion Revolving Credit Loan Facilities with a Five Years Revolving/Term Loan Facility

Hong Kong container terminal operator Modern Terminals Limited signed a five-year HK$2,600,000,000 revolving credit/term loan facility with eight leading banks on 30th September 2002. The facility will repay the outstanding advances under the existing HK$2.6 billion revolving loan facilities signed in June, 2000 and finance the construction of Container Terminal 9, capacity enhancement at existing terminal facilities as well as working capital requirements.

The banks participating in this loan facility are:

        Bank of China (Hong Kong) Limited,
        Hang Seng Bank Limited,
        The Hongkong and Shanghai Banking Corporation Limited,
        UFJ Bank Limited, Hong Kong Branch,
        Citibank, N.A.,
        Standard Chartered Bank,
        Bank of America, N.A., and
        Mizuho Corporate Bank Limited.

Facility agent:
        The Hongkong and Shanghai Banking Corporation Limited

Speaking at a contract signing ceremony for the revolving credit/term loan facility, Modern Terminals' Managing Director Erik Bogh Christensen said it represents a further step forward in the company's ongoing expansion.

"Modern Terminals this year celebrates its 30th anniversary - a remarkable period of growth and industry innovation in terms of operating efficiencies and customer service. Our plans for the future are no less ambitious. With this revolving credit/ term loan facility, we have rationalized our financial resources at a time when Container Terminal 9, of which we will own and operate four berths, is nearing completion. This facility will provide Modern Terminals with a sound financial structure, allowing us to pursue our strategic growth plan, with the strong backing of such group of leading banks.

"Moreover, this facility represents the confidence of the participating banks in the future of the company and of the container terminal industry in Hong Kong." Mr Christensen added.

Modern Terminals in brief

Modern Terminals is the longest established container terminal operator in Hong Kong, having opened the territory's first purpose-built container terminal in September 1972. In 1999, it won the Hong Kong Productivity Council's Productivity Award for Services. On 1st February, 2001, Modern Terminals set a new world record for container handling productivity with an average 336 moves per hour, greatly exceeding the fastest previously reported rate of 255.6 moves per hour achieved in Oman. The company's portal, ModernPorts, was awarded a Certificate of Merit in the Application Category of the IT Excellence Awards 2001. In addition, Modern Terminals is the first terminal to gain the Labour Department's approval to run courses for its employees and contractors who operate loadshifting machines.

Managing Director Erik Bøgh Christensen (fourth from right) and Chief Financial Officer Jackson Ng (fourth from left) of Modern Terminals, sign a HK$2,600,000,000 revolving credit/term loan facility with 8 leading banks for the company's future investment programme.