HONG KONG (Bloomberg) ? Hongkong Land Holdings Ltd., one of the city?s largest business-district property owners, is looking to refinance debt at its lowest-ever interest, bankers involved in the deal said.

The company is seeking to borrow at least HK$5 billion ($644.8 million) at an interest margin of between 25 and 30 basis points over the Hong Kong interbank offered rate for the seven-year loan, said the bankers.

It is paying 42 basis points more than Hibor for a HK$5 billion seven-year loan signed in 2003, according to data compiled by Bloomberg.

Hongkong Land will save more than HK$6 million in annual interest by replacing the credit. The transaction adds to the $2.9 billion of refinancing loans Hong Kong-based property developers have taken this year, Bloomberg data show.

The company plans to pay an all-in yield, which includes interest and fees, of about 35 basis points over Hibor, said the bankers, who declined to be named. It?s asking banks to agree to the terms by the end of this month, they said.

Three-month Hibor, an average of rates set daily by banks and used as a borrowing benchmark, was 4.65 percent yesterday. A basis point is 0.01 percentage point.

Since 2001, the rate Hongkong Land pays above Hibor for its seven-year loans has dropped more than 45 percent, as banks offer attractive terms to compete for lending opportunities and corporate relationships, Bloomberg data show.

Hongkong Land?s profit rose to HK$2.06 billion in 2005 from HK$1.69 billion in 2004, as the value of its real-estate holdings surged 34 percent, the company said on February 23.

The company is based in Hong Kong, incorporated in Bermuda and its shares trade in London and Singapore in US dollars. It?s controlled by Scotland?s Keswick family through Jardine Matheson Holdings Ltd., which owns real estate, supermarkets and drugstores in Asia and runs hotels worldwide including Mandarin Oriental luxury hotels.