New World Development (0017) yesterday confirmed it had won bank loans worth HK$30 billion during the first half of this year, as reported by local media.
Of this, around HK$22 billion was for refinancing and over HK$8 billion was for new loans. All their financing arrangements were characterized by their low cost, it said.
The developer said the interest rate for loans obtained from local banks is a low-cost financing of approximately 1.1 basis points above the Hong Kong interbank offered rate. For loans within mainland China, NWD said it is enjoying favorable interest rates ranging from 2.8 to 3.2 percent.
Additionally, NWD said that as of the end of last year, its average loan rate was around 3.8 percent, indicating strong support from the banks for the company.
Earlier, NWD denied reports that it had pledged commercial projects as a form of alternative financing as "completely false and misleading," adding it suspected that the allegations were made with the intention of manipulating the bond and equity trading of the company for personal gain.
Its shares rebounded by 3.15 percent to HK$17.04 yesterday.
