Hong Kong’s NWD Targets Debt Reduction with $2B Repayments and Refinancing, Receives $1.15B Bid for K11 Art Mall

New World Development (NWD) in Hong Kong intensifies its debt reduction efforts by repaying and refinancing US$2 billion. The conglomerate has reportedly received an offer worth HK$9 billion for its K11 Art Mall located in Tsim Sha Tsui. The bid is said to have come from a subsidiary of China Resources Holdings, as per a local news report.

The Hong Kong-based company, New World Development (NWD), which aims to decrease its debt ratio to less than 40% by 2027, is steadily advancing by paying off and restructuring its debt liabilities.

The corporation, under the ownership of one of the city's most affluent families, announced on Friday that it has settled over HK$16 billion (US$2.05 billion) in loan agreements and debt repayments during July and August, which includes early repayment of specific loans scheduled for 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 they will persist in improving their debt portfolio through various funding sources while efficiently managing their financing expenses to uphold a strong financial standing."

The developer stated that they had boosted their onshore lending to decrease their total funding costs, and additional loans were being considered. The onshore credits comprises of a 12-year loan worth 1 billion yuan (USD 140.3 million) with a 3.1% interest rate, and a 15-year loan of 400 million yuan with a 3.15% interest rate.