Latest news with #EchoHuang
Time of India
01-07-2025
- Business
- Time of India
Hong Kong's New World Development gets crucial $11 billion refinancing deal
BENGALURU: Hong Kong builder New World Development said on Monday it had received commitments for a HK$88.2 billion ($11.24 billion) loan refinancing package, as the property developer finalises a crucial lifeline in a struggling market. The refinancing, poised to be one of the largest ever seen in Hong Kong, concludes months of negotiations over a debt package designed to bring the company back from the brink of default. New World, which carries one of the highest debt ratios among its peers, changed its chief executive twice last year. Adrian Cheng, who stepped down as CEO in September, after the company reported its first annual loss in over 20 years, had resigned as a non-executive director and non-executive vice-chairman, New World said in a separate filing to the exchange on Monday. Giving details of its refinancing plan, 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, the earliest being June 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 debt and improving cash flow. Earlier this month, Reuters reported that New World had made a dollar bond interest payment due on June 16, offering temporary relief to the market over its liquidity. And Monday's update from the company followed media reports suggested the property developer was close to securing a loan refinancing deal. New World's market capitalisation stood at $12 billion when Cheng, the third-generation heir to the company, succeeded his father as CEO in 2020 and expanded the firm's operations in Hong Kong and China . Its market value is currently $1.83 billion.
Free Malaysia Today
01-07-2025
- Business
- Free Malaysia Today
HKs New World Development secures US$11bil refinancing deal
Hong Kong is suffering its longest property market downturn since the SARS outbreak in 2003. (EPA Images pic) HONG KONG : Hong Kong property firm New World Development said today that it has closed a refinancing deal worth HK$88.2 billion (US$11.2 billion), securing a lifeline as the builder braves a prolonged market slump. The firm, run by Hong Kong tycoon Henry Cheng's family empire, last year reported its first annual loss in two decades and has one of the highest debt burdens among the city's developers. The deal today covers 'approximately HK$88.2 billion of the group's existing unsecured offshore financial indebtedness', including bank loans, New World said in a stock exchange filing. It is the largest-ever borrowing of this type in Hong Kong, according to Bloomberg News. The developer said the deal terms 'allow the group more flexibility to better manage its expected ongoing business and financial needs'. CEO Echo Huang said New World will prioritise 'reducing indebtedness and improving cash flow'. 'The group will continue to implement treasury management strategies and adhere to its existing financial obligations,' Huang added in a statement. New World last month said it would defer interest payments of some bonds, a move that does not typically result in default but nevertheless indicated liquidity pressures, Bloomberg News reported. The developer said total liabilities stood at HK$211 billion as of the end of last year, according to its interim report published in February. Brock Silvers, managing director at private equity firm Kaiyuan Capital, told Bloomberg News that New World 'may have dodged a bullet' but Hong Kong's economy was still at significant risk. 'Developers remain overly indebted, and more companies are likely to need reorganisation,' Silvers said. New World is one of Hong Kong's top developers with a wide range of residential and commercial projects, including the K11 malls in the tourist district Tsim Sha Tsui. Its real estate arm has been under stress as Hong Kong suffers the longest property market downturn since the SARS outbreak in 2003. The group replaced its CEO twice in rapid succession last year.
Yahoo
30-06-2025
- Business
- Yahoo
Hong Kong's $11 Billion Lifeline: How One Deal Stopped a Property Meltdown
New World Development (NDVLY) has pulled off what could be the most critical loan deal in Hong Kong's recent property history. After months of tense negotiations, the company secured a record HK$88.2 billion refinancing packagean all-lender agreement that may have prevented a financial shock with ripple effects far beyond real estate. This wasn't a vote of confidence in its fundamentals; it was triage. Some bankers reportedly pitched the deal to their credit teams not on New World's merits, but on the sheer damage its collapse could do. New World holds around $40 billion in local assetsroughly 10% of Hong Kong's GDPand analysts warned a default might've pushed home prices down another 7% in a market already four years deep into a downturn. Warning! GuruFocus has detected 8 Warning Signs with NDVLY. This deal buys time, not peace. The company still has around $8 billion in bonds outstanding and is under pressure to offload more assets and raise another $2 billion just to keep up with upcoming maturities. Bondholders have already been burnedNew World deferred interest on $3 billion of perpetual bonds back in Mayand creditors remain cautious. Behind the scenes, it reportedly took nudges from regulators, coordination among big lenders like HSBC and Bank of China, and pressure on smaller holdouts to get the deal across the line. CEO Echo Huang framed the agreement as proof of confidence in New World's operations, but analysts say debt reduction and cash flow improvement are now non-negotiable priorities. Still, Hong Kong's broader real estate picture remains under strain. Property prices are down roughly 30% from peak levels. Negative equity is surging. Some mid-sized developerssitting on at least $22 billion in debtare facing tighter terms or no refinancing options at all. The city's loan-to-deposit ratio has dropped to its lowest point since the global financial crisis. While there are signs of potential relieflower interbank rates, tax cuts, and some renewed interest from mainland buyersthis isn't a clear recovery. As Patrick Ho from Centaline Family Office put it, it is still unclear when we will see the end of the tunnel. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
30-06-2025
- Business
- CNA
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.
South China Morning Post
30-06-2025
- Business
- South China Morning Post
Hong Kong's New World secures US$11.3 billion refinancing deal just before deadline
Hong Kong developer New World Development (NWD) has successfully refinanced HK$88.2 billion (US$11.3 billion) of debt just before the deadline, concluding months of negotiations that pulled the company back from the brink of default. The refinancing package includes multiple tranches of bank loans with varying maturities, with June 30, 2028, being the earliest, the developer said in an exchange filing on Monday. The package would 'allow the group more flexibility to better manage its expected ongoing business and financial needs', the statement said. 'The new bank facility and the aligned bank facilities have terms, including financial covenants and security interests granted over certain of the group's assets.' CEO Echo Huang Shaomei said the successful refinancing 'is a testament to the confidence' placed in the company's operations, adding that the group's financial strategy prioritises reducing debt and improving cash flow. New World CEO Echo Huang Shaomei said the successful refinancing was a testament to the confidence placed in the company's operations. Photo: SOHU While local media reported that the refinancing deal was backed by some 40 of the company's assets, including the New World Tower headquarters and Victoria Dockside complex in Tsim Sha Tsui, the company did not give any details.
