Hong Kong's New World Development gets US$11.24 billion refinancing
Hong Kong builder New World Development said on Monday (Jun 30) it had received commitments for a HK$88.2 billion (US$11.24 billion) loan refinancing, as the builder finalises a crucial lifeline in a distressed property market.
New World's refinancing, poised to be one of the largest ever seen in Hong Kong, concludes months of negotiations over a debt package designed to steer the company away from the brink of default.
The deal offers a temporary reprieve, while China's prolonged property downturn continues to cast a shadow over the developer's outlook.
New World said it had refinanced portions of its existing offshore unsecured debt, including bank loans, through a new facility, and had also aligned the terms of its remaining loan agreements.
The new facility consists of multiple tranches of bank loans with different maturities, with the earliest being Jun 30, 2028.
The refinancing includes terms such as financial covenants and security over certain assets that provide the firm with greater flexibility to effectively manage its ongoing business operations and financial requirements, the company said.
'We would like to express our sincere gratitude to the banking community for their continued support. This is a testament to the confidence placed in our operation,' said Echo Huang, CEO of New World.
She added that the Group's financial management strategy is to prioritise reducing indebtedness and improving cash flow.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
2 hours ago
- CNA
Asia First - Mon 30 Jun 2025
02:27:19 Min From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
CNA
3 hours ago
- CNA
Japan's Dai-ichi Life could double investment target to at least $4 billion
TOKYO :Japan's Dai-ichi Life could double its strategic investment target to at least 600 billion yen ($4.17 billion) in its next medium-term management plan, the life insurer's CEO said, as the company looks to expand internationally. Dai-ichi expects to accelerate its overseas investments after it acquired 15 per cent of UK insurer and asset manager M&G for around 160 billion yen in May, CEO Tetsuya Kikuta told Reuters in an interview. The firm joins a host of Japanese financial institutions spending big on overseas acquisitions in search of growth as Japan's domestic market shrinks. British firm Legal & General announced a tie-up with Meiji Yasuda in February, while Deutsche Bank's investment arm DWS is in talks to form a joint venture with Japan's largest insurer Nippon Life in India, Reuters reported in May. Dai-ichi's current medium-term strategy, which runs for three years until March 2027, had targeted 300 billion yen for strategic investment. Besides the M&G stake, the company has also invested around 100 billion yen in Australian finance group Challenger and upped its stake in UK hedge fund Capula Investment Management. Dai-ichi's next strategy period is yet to be finalised but may run for four years, Kikuta said. ($1 = 143.9800 yen)
CNA
3 hours ago
- CNA
Trump says no plans to extend tariff pause after Jul 9
US President Donald Trump dashing hopes of an extension to a 90-day pause on tariffs. He has said he plans to stick to the Jul 9 deadline. The UK is the only nation to have struck a deal so far, while a temporary truce is in effect with the US and China. Mr Trump said he will start sending out letters to notify trading partners of their tariff rates. With just 10 days to go, Asian nations are racing against the clock to hammer out an agreement. Nick Harper reports from Washington DC.
