Business
Hong Kong’s NWD Accelerates Debt Reduction Strategy Through US$2 Billion Repayments, Refinancing, and Potential Sale of K11 Art Mall
NWD of Hong Kong intensifies its debt reduction efforts with repayments and refinancing amounting to US$2 billion. As per a local news outlet, the conglomerate has received an offer of HK$9 billion from a subsidiary of China Resources Holdings for its K11 Art Mall in Tsim Sha Tsui.
New World Development (NWD), a company listed in Hong Kong, is on track with its goal to lower its debt ratio to under 40% by 2027. It's achieving this through consistent repayments and restructuring its debt commitments.
The corporation, which belongs to one of the city's richest families, announced on Friday that it had successfully managed over HK$16 billion (US$2.05 billion) in loan transactions and debt settlements in July and August, including premature refinancing of some loans due in 2025. This comes after the repayment of HK$35 billion in loans and debts in the first half of the year.
"The company stated that it will persist in enhancing its debt portfolio through various funding sources, and efficiently manage its financing expenses to uphold a robust financial standing."
The developer announced that they have boosted their onshore lending to decrease their total financing expense, and they are currently in talks for more loans. These onshore loans involve a 12-year loan of 1 billion yuan, equivalent to US$140.3 million, with a 3.1 per cent interest rate, and a 15-year loan of 400 million yuan with a 3.15 per cent interest rate.
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