New World Development Offers $15 Billion in Properties for Loan Refinancing
New World Development Co., a major Hong Kong real estate company, has offered properties valued at $15 billion as collateral for loan refinancing. The move comes amidst increasing funding challenges for the company, which is facing one of the highest debt burdens among Hong Kong developers.
The company is seeking a three-year refinancing facility backed by marquee properties, including K11 Artus, K11 Atelier King's Road, and New World Tower. The move is intended to refinance unsecured loans maturing in 2025 and 2026, which would reduce assets available for unsecured bondholders.
New World has been facing turmoil in recent months as investors question its debt repayment capacity. The company has appointed its third CEO in two months in an attempt to stabilize its operations.
The refinancing proposal, if successful, would provide New World with some breathing room as it manages its maturing debt obligations. However, New World has stated that it is not currently in talks for any comprehensive debt restructuring.