Sogo refi tests retail sentiment

摘要

An affiliate of Hong Kong's Sogo department stores is in the market with an HK$8bn (US$1bn) refinancing, presenting lenders with a tough call at a time when the city's brick-and-mortar retail sector remains under heavy pressure. Pricing on the loan is significantly higher than when borrower FUTURE DEVELOP last tapped the market five years ago, but the deal comes as lenders are reluctant to take exposure to an industry that is still reeling from the impact of Covid-19. Although shops in Hong Kong have remained open throughout the pandemic, the collapse of tourist traffic and shift to online retail continues to weigh on revenues.