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
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.

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