Business
Hong Kong’s NWD Steps Up Debt Reduction Efforts: US$2 Billion in Repayments and Refinancing Amidst Potential HK$9 Billion K11 Art Mall Sale
New World Development in Hong Kong accelerates its debt reduction by repaying and refinancing US$2 billion. According to local news, the company has gotten 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, has a goal to cut its leverage ratio to less than 40 percent by 2027. The firm is consistently advancing towards this goal by repaying and restructuring its debts.
The business empire, controlled by one of the richest families in the city, announced on Friday that it had finalized over HK$16 billion (US$2.05 billion) in loan agreements and debt settlements in July and August. This includes the early repayment of specific loans set to mature in 2025. This comes after HK$35 billion of loan and debt repayments were made in the first six months of the year.
"The company mentioned they will persist in enhancing their debt portfolio through varied funding sources, and efficiently manage their financing expenses to preserve a robust financial standing."
The developer stated that they've heightened their onshore lending to reduce the total cost of financing, and that they're negotiating further loans. The onshore loans encompass a 1 billion yuan (US$140.3 million) loan over 12 years at an interest rate of 3.1 per cent, as well as a 400 million yuan loan over 15 years with a 3.15 per cent interest rate.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.