Finance

The AA continued to plan and control its finances within the parameters
of the AA Ordinance and, with regard to first-phase development, in
accordance with the provisions of the Financial Support Agreement (FSA)
signed with the government in 1995. The FSA has given the AA a
package of financial support to faciliate the raising of finance. Following
success in securing an $8.2 billion syndicated loan facility which covers a
substantial part of its permitted borrowings for the first phase
development, in September 1997 the AA signed a $4 billion syndicated
revolving loan with 32 international financial institutions for general
corporate purposes. These include the financing of the second runway,
the north-west concourse and new capital expenditure arising after airport
opening. In October, the AA signed a $5 billion Note Issuance Programme
arranged by the Hong Kong Monetary Authority.

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