Hong Kong’s NWD steps up debt reduction with US$2 billion of repayments, refinancing
The group has received a bid of HK$9 billion for its K11 Art Mall in Tsim Sha Tsui from a subsidiary of China Resources Holdings, according to a local media report
Hong Kong-listed New World Development (NWD), which has set a target of reducing its gearing ratio to below 40 per cent by 2027, is making steady progress through repayments and reworking its debt obligations.
The conglomerate, owned by one of the city’s wealthiest families, said on Friday that it had completed more than HK$16 billion (US$2.05 billion) of loan arrangements and debt repayments in July and August, including early refinancing of certain loans due in 2025. This follows HK$35 billion of loan and debt repayments in the first half.
“The group will continue to optimise its debt portfolio with diversified funding channels, and effectively control its financing costs to maintain a solid financial position,” the company said.
The developer said it had increased onshore borrowings to lower its overall financing cost and that more loans were under discussion. The onshore loans include a 12-year 1 billion yuan (US$140.3 million) loan at an interest rate of 3.1 per cent and a 15-year 400 million yuan loan at an interest rate of 3.15 per cent.
Earlier this month, NWD issued a US$400 million 3.5-year note with a coupon of 8.625 per cent, with the proceeds to be used for general corporate purposes, capital management and refinancing.
The bond offering attracted US$1.5 billion of interest, representing an oversubscription of 3.75 times, the company said.
