Hong Kong’s MTR Corp. is negotiating a loan to finance the Northern Link rail project, which aims to transform transportation in the New Territories and strengthen the city’s transit network. This is reported by the railway transport news portal Railway Supply.

The talks with banks remain in early stages, and both loan size and terms are still under discussion. The funds will support the first phase of construction for this strategic project.

Hong Kong MTR Loan Talks for Northern Link
A traveler on the MTR Corp. railway system in Hong Kong. Photographer: Paul Yeung/Bloomberg

Earlier this month, the Hong Kong government approved financial arrangements, signaling a green light for the ambitious initiative. Estimated costs for design, construction, and facility upgrades will total around $4 billion over the next decade.

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Hong Kong MTR Drives Funding Strategy for Expansion

This financing effort adds to a series of recent fundraising activities. So far this year, MTR has raised at least $6.24 billion through bond sales. In June, it secured $3 billion via subordinated debt, while March saw another $3 billion in fixed-rate notes.

Additionally, the company held talks with banks earlier for bilateral loans, reflecting its proactive approach to liquidity and project planning. A spokesperson confirmed that MTR will continue to assess funding needs based on market conditions.

Hong Kong Northern Link to Transform Regional Mobility

The Northern Link, scheduled for completion in 2034, will connect the East Rail Line and Tuen Ma Line, forming a loop in the northern New Territories. This integration will improve connectivity and support population growth in the region.

Alongside the railway, MTR will implement related infrastructure and property developments, reinforcing its rail-plus-property model. The company plans to fund the project using internal resources, property proceeds, and debt financing.

Through strategic funding and timely planning, Hong Kong MTR aims to maintain its leadership in regional transportation. This initiative promises to reshape mobility and drive sustainable economic growth across the city.

Source: www.bloomberg.com

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