West Kowloon Cultural District Authority Secures HK$3 Billion Loan for Financial Flexibility

The West Kowloon Cultural District Authority (WKCDA) has signed a HK$3 billion, 10-year loan agreement with ICBC Asia to enhance financial flexibility and support its public mission. According to RTHK, the authority believes this reflects the banking sector's confidence in the future development of West Kowloon. Additionally, WKCDA plans to issue medium-term bonds, with a framework based on other public institutions' experiences, and a cap of US$1 billion. This follows a three-year, HK$4 billion sustainability-linked loan obtained in 2022, which will be refinanced in 2024, increasing the loan amount to HK$5 billion. The authority believes these arrangements will gradually address short- and medium-term cash flow pressures. During a media luncheon, WKCDA Board Chairman Bernard Chan discussed the progress of commercial and residential projects. He stated that the Art Square building, comprising three commercial office towers with a total floor area of approximately 65,000 square meters, is expected to be completed next year. This development includes retail, dining, and leisure facilities, anticipated to generate stable rental income. Additionally, the West Kowloon Performing Arts Center, currently under construction, is set to open next year and is expected to further contribute to venue rental income. Regarding the proposed residential project in Zone 2B of West Kowloon, the authority is preparing for the tender process, which is expected to be ready within this year. The actual tender timing will depend on market conditions, and the authority must submit a tender schedule for each residential development project, subject to approval by the Development Bureau. WKCDA CEO Betty Fung reported that the operational performance of the West Kowloon Cultural District was favorable last year, with over 17 million visitors, a 13% increase year-on-year. The "Picasso and His Time" exhibition at M+ attracted over 200,000 visitors, while the Hong Kong Palace Museum recorded approximately 1 million visitors throughout the year. The Ancient Egyptian Civilization exhibition, which opened in November last year, has already drawn over 220,000 visitors. Additionally, the ferry service between West Kowloon and Central, launched in mid-November last year, has transported over 155,000 passengers by early this month.