HSBC to advise on securitisation proposal for tunnels

The government has appointed the Hongkong and Shanghai Banking Corporation (HSBC) as its financial adviser on the proposed securitisation of toll revenue of government-owned tunnels and bridges.

The bank will give advice on the legal and financial structure and other related matters in the proposal.

HSBC was selected through a competitive selection exercise in which technical and fee proposals were submitted from a short-list of firms.

The financial adviser will work closely with the government to ensure the work is carried out to the highest standards and is completed as soon as possible.

It is expected the adviser's recommendations will be implemented within the current financial year.

In this connection, the government will soon be inviting expression of interest from financial institutions with a view to selecting arrangers and underwriters for the purpose.

The securitisation proposal is part of the asset disposal programme announced in the 2003-04 Budget.

End/Wednesday, November 5, 2003