NWD to put up more assets as collateral

New World Development (0017) has proposed using US$3.8 billion (HK$29.64 billion) of additional properties as collateral to refinance bank loans maturing in 2027 and beyond, according to people familiar with the matter, as it looks to ease liquidity pressure.

The latest move follows an earlier proposal to pledge 25 property assets valued at US$15.3 billion to refinance US$7.7 billion in loans maturing this year and next. It brings New World's total collateral package to US$19.1 billion.

NWD has sent revised preliminary terms of the three-year refinancing deal to banks, requesting feedback by Friday.

Support from banks on the loan refinancing exercise will be crucial for New World, as the developer faces mounting pressure to cope with one of the highest debt burdens among the city's developers in a challenging property market.

New World hasn't indicated the total amount of bank loans coming due in 2027 and beyond. It had consolidated net debt of HK$123.8 billion as of June 30, according to its 2024 annual report. Bank of China (3988), DBS Bank and The Hongkong and Shanghai Banking Corporation are likely to arrange the jumbo refinancing deal.

Bloomberg