Hong Kong’s New World completes HK$35 billion loan arrangements, debt repayments this year

HONG Kong’s New World Development has completed HK$35 billion (S$6.1 billion) worth of loan arrangements and debt repayments so far this year, including recently refinancing a HK$9.25 billion hotel loan, it said on Monday (Jun 24).

The Hong Kong major property developer said in a newsletter that the hotel loan for a joint venture with Abu Dhabi Investment Authority due this month was refinanced with HK$260 million additional new money, with a total amount of HK$9.5 billion.

New World has one of the highest debt ratios in Hong Kong’s property sector, and its de-leveraging plan has been in the spotlight in the past year.

The developer also said on Monday it increased the proportion of yuan loans to reduce its overall financing costs, including raising two onshore loans totalling 2.6 billion yuan (S$484.6 million).

“The Group will continue to optimise its loan portfolio and seek low-cost onshore loans in order to effectively control financing costs and maintain a solid financial position,” the newsletter said.

Earlier this year, New World raised its target for disposing of non-core assets in the financial year to end-June by 33 per cent to HK$8 billion. REUTERS