CITIC Telecom International Holdings Ltd. (01883.HK) is planning a debt restructuring to mitigate the impact of a rate hike in the United States, according to chief executive Li Zhenhui.
The company has the highest percentage of US dollar debt among all Hong Kong-listed companies, the Hong Kong Economic Journal reports, citing Goldman Sachs.
The investment bank said in September that all of CITIC Telecom’s debts are denominated in US dollars that will weigh on earnings when the federal funds rate starts to climb.
CITIC Telecom had net borrowings equivalent to HK$6.3 billion (US$812.87 million) as of the end of June, of which 57.8 percent are on floating rates.
Its repayment peak will come next year when HK$1.69 billion in aggregate principal falls due.
Li said the restructuring will include repayment of debts and refinancing at a lower interest rate but not foreign currency hedging.
He expects the company’s full-year results to show minimal impact from a US rate hike, he said.
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