From Figure 1, it appears that Developer B also wished to lock in funding cost at a time when HIBOR
fluctuated intermittently in the period 1999-2001, and also when interest rates had an upward trend in 2007.
An HKMA spokesperson said, The HKMA is committed to protecting the integrity of the HIBOR
benchmark fixing mechanism.
The amended facilities will bear interest at a fluctuating rate per annum based on HIBOR
plus a margin, initially set for a six month period at 1.
The proportion of new mortgage loans priced with reference to HIBOR
decreased to 79.
It has a maturity of seven years at 43 basis points over HIBOR
5% of mortgage loans were priced with reference to HIBOR