Sports Hub demands bankers lower rates

Singapore Sports Hub, with planned loans worth S$1.8 billion ($1.3 billion), is asking banks to lower their interest rate.

Bloomberg reported Sports Hub requesting banks to lend for 10 years at less than 3 percentage points over the Singapore swap offer rate. This follows a discussion made in December 2009 about a rate of 3.5 percentage points for project financing of up to 17 years.

People familiar with the matter said Oversea-Chinese Banking Corp., HSBC Holdings Plc, and ING Groep NV are among the banks Sports Hub is seeking lower interest rates from.

Sports Hub, which is building a national sports stadium, began loans negotiations with prospects in 2008 prior to a hike in borrowing costs amidst the global financial crisis.