New World Development (0017) said on Monday it has completed refinancing arrangements covering about HK$88.2 billion of its existing offshore unsecured debt, providing a temporary relief for the heavily indebted developer amid Hong Kong’s prolonged property downturn.
The refinancing includes a new bank facility and a series of aligned bank facilities, the company said.
The terms include financial covenants and the provision of security interests over certain assets, which New World said would enhance its financial flexibility and help it better manage ongoing operational and funding needs. The new loans are structured in multiple tranches with staggered maturities, the earliest of which is due on June 30, 2028.
Chief executive Echo Huang Shao said the successful completion of the refinancing reflects continued confidence from lenders in the company’s operations.
Huang noted that New World's financial management strategy is to prioritise reducing indebtedness and improving cash flow. "The company will continue to implement treasury management strategies and adhere to its existing financial obligations," she added.
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