Latest news with #NewWorldDevelopmentCo
Bloomberg
18 hours ago
- Business
- Bloomberg
New World's Bond Prices Surge as It Nears Refinancing Deal
New World Development Co. 's dollar bonds are poised to hit their highest levels this month as the company closes in on a crucial loan refinancing deal. The indebted Hong Kong builder's bonds were up 2 to 3 cents across maturities Friday morning, according to traders. A senior note maturing in 2027 rose nearly 3 cents to 71 cents on the dollar, on pace for its highest level since May 30, when the company said it would delay interest payments on four of its perpetual bonds.
Bloomberg
13-06-2025
- Business
- Bloomberg
New World's $11 Billion Refinancing Gambit Must Get 100% Support
As distressed Hong Kong builder New World Development Co. gathers more support from banks for its targeted HK$87.5 billion ($11.1 billion) loan refinancing, a key part of the terms shows that it must get 100% in commitments, or the deal will fall through. Documentation for the potential borrowing shows that if New World doesn't achieve a 100% approval rate by June 30, any collateral pledged would be released and bank commitments canceled, people familiar with the matter said.
Bloomberg
12-06-2025
- Business
- Bloomberg
New World Gains Support for 87% of Loan Refinancing From Banks
By Apple Ka Ying Li and Save New World Development Co. has received more backing from banks for its HK$87.5 billion ($11.2 billion) loan refinancing, giving it written commitments for 87% of the total, according to people familiar with the matter. That means it has secured HK$76.1 billion of commitments as it races to complete the deal with more than 50 banks by the end of the month, when a covenant waiver on its existing facilities expires. The latest tally marks continued progress for the distressed Hong Kong builder. As of May 30, New World had secured written commitments from over 20 banks for 60% of the total target, Bloomberg reported.
The Star
02-06-2025
- Business
- The Star
Hong Kong bankers on edge over US$11bil loan
The stakes are so high that in many cases, the banks' chief risk officers have stepped in. — Bloomberg HONG KONG: Hong Kong bankers have become fixated on an US$11bil loan deal with unusually high stakes for the financial hub. New World Development Co (NWD), an embattled property developer controlled by one of Hong Kong's richest families, is aiming to complete one of the city's largest-ever corporate refinancing deals with more than 50 banks by the end of June after pushing back an initial deadline for this month. So far, at least 12 banks have agreed to terms while the rest are still talking, according to sources. Failure to reach a deal could lead to demands for immediate repayment. The repercussions would threaten both NWD and many of the banks which are already suffering from a sharp rise in non-performing loans from commercial real estate. The stakes are so high that in many cases, the banks' chief risk officers have stepped in, sources said. Even chief executive officers of banks are closely monitoring the situation with frequent updates, the people added, asking not to be identified as the matter is private. 'A NWD failure wouldn't break the system, but that destabilisation could be contagious,' said Brock Silvers, managing director at private equity firm Kaiyuan Capital. 'A 'delay & pray' strategy would buy time while doing little to alleviate underlying risk to the company or Hong Kong's broader financial system.' NWD aims to secure HK$87.5bil in refinancing. It has commitments exceeding HK$20bil from Bank of China Ltd, HSBC Holdings Plc and Standard Chartered Plc, local lenders Bank of East Asia Ltd, Fubon Bank (Hong Kong) Ltd, Hang Seng Bank Ltd and French lender Credit Industriel et Commercial SA along with several other financial institutions. NWD did not respond to a request for comment. The other banks are in the process of securing internal credit approvals. A deal of this magnitude can take time as credit committees scrutinise every detail, raising numerous questions to evaluate the risks involved. Some banks are waiting for lenders with greater exposure to sign on before they can secure their own internal approvals, said the sources. A couple of other top Chinese, Japanese and Singaporean banks are in the final stages of approving the loan, according to sources. 'If one or two lenders in the syndicate are unwilling to commit, will the others in the syndicate be willing to take up the rest of the refinancing? 'If yes, the impact to the banking sector would be limited,' said Cusson Leung, chief investment officer for KGI Asia. — Bloomberg
Bloomberg
28-05-2025
- Business
- Bloomberg
New World's Perpetual Bond Drops as Coupon Payment Date Nears
A perpetual bond issued by Hong Kong developer New World Development Co. fell to its lowest level in three months, as investors wait to see whether the company will defer June coupon payments. The 6.15% perpetual note slumped more than 4 cents to 54.8 cents on the dollar as of 4:23 p.m. Hong Kong time, heading for its lowest level since February, according to data compiled by Bloomberg News. Several other dollar bonds sold by the troubled builder slid about 2 cents.
