New World Development (0017.HK) shares climbed by 4.24 percent to last at HK$17.22 at noon, after the group said it secured HK$30 billion of low-interest loans from banks.
The group said it has successfully obtained bank loans of over HK$30 billion between March and June of this year. Of this amount, about HK$22 billion was obtained through refinancing and over HK$8 billion was newly approved, with low-cost financing at an interest rate of HIBOR plus about 1.1 percent.
Meanwhile, a group spokesman said the preferential interest rates for loans obtained in mainland China are between 2.8 percent and 3.2 percent. And as of the end of 2022, the average interest rate for the group's bank loans was approximately 3.8 percent, reflecting strong support from the banks for New World Development.
Sources said amidst the housing crisis, banks are inclined to maintain good ties with strong Hong Kong-invested property developers, and there seem to be no changes to New World’s credit line amid rumors that the company has pledged its commercial projects as a form of alternative financing - a claim rejected by the group.
Read more: New World rejects claims of pledging commercial projects as alternative financing
Sources also said New World Group may redeem some of its perpetual bonds early to boost market confidence.
