New World Gets Support From About 10 Banks for Loan Refinancing
(Bloomberg) -- New World Development Co. has secured commitments from about 10 banks for its HK$87.5 billion ($11.2 billion) loan refinancing, according to people familiar with the matter, as the cash-strapped builder races to complete the deal before the end of next month.
Major banks Bank of China Ltd., HSBC Holdings Plc and Standard Chartered Plc, local lenders Bank of East Asia Ltd., Fubon Bank (Hong Kong) Ltd., Hang Seng Bank Ltd., and French lender Credit Industriel et Commercial along with several other financial institutions have completed the internal approval process to join the deal, with total commitments exceeding HK$20 billion, the people said. More banks are going through internal credit approvals and expect to finalize their commitments in the coming weeks, they added.
New World has invited over 50 existing bank lenders to join the transaction, they said.
While New World is eager to complete the refinancing and bolster its liquidity, a transaction with such a large number of participants can take time to process. Commitments from most of the lenders involved have yet to be finalized, but many bankers expect that the deal will eventually come together, the people said. Some banks are waiting for lenders with greater exposure to New World to sign on before they can secure their own internal approvals, the people added.
HSBC and Standard Chartered declined to comment. New World, Bank of China, Bank of East Asia, Fubon Bank, Hang Seng and Credit Industriel et Commercial didn't immediately respond to requests for comment.
New World is under pressure to complete the deal by the end of June as a covenant waiver on its existing facilities is set to expire. The initial deadline for banks to finalize their commitments for the refinancing was the end of May, but some lenders have indicated they need additional time to secure internal credit approvals, Bloomberg News reported earlier.
If the waiver expires before a refinancing deal, some banks could demand immediate repayment, though that scenario is unlikely, Bloomberg News earlier reported.
New World, controlled by the family empire of tycoon Henry Cheng, has been in discussions with banks since January seeking to refinance its bank borrowings maturing this year and beyond.
The company also has multiple bond coupon payments due in June that will be closely watched by investors. It had total liabilities of HK$210.9 billion at the end of December 2024 and in June it has at least $116.6 million of coupon payments due, including on four perpetual notes.
More stories like this are available on bloomberg.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Luxury skincare expansion: L'Oreal acquires majority stake in Medik8; announces 1 billion Euro deal
Cosmetics maker L'Oreal agreed to acquire a majority stake in British skincare brand Medik8, in a strategic move to strengthen its presence in the booming skincare market. The French beauty giant announced the deal on Monday, though financial terms were not disclosed. The transaction, which sees UK-based private equity firm Inflexion selling its majority holding, reportedly values Medik8 at around 1 billion Euro, according to a source familiar with the matter. Inflexion will retain a minority share, while L'Oreal has secured the option to eventually buy out all remaining shareholders, Reuters reported. 'We are delighted to welcome Medik8 to the L'Oréal family. As a premium skincare range, with high levels of proven efficacy at an accessible price point, Medik8 perfectly complements our existing skincare portfolio,' Cyril Chaupuy, president of L'oreal Luxe said. 'This acquisition further strengthens L'Oreal's luxe portfolio, adding a premium science-backed skincare brand with a proven track record of success, with strong potential for global growth,' the company said in a statement. L'Oreal will begin consolidating Medik8's sales once the transaction officially closes. The acquisition is expected to be finalised in the coming months, pending regulatory approvals and standard closing conditions. Simon Coble, CEO of Medik8 also expressed excitement on the brand's behalf. 'I am delighted to be joining forces with a company which shares our vision for the brand's future growth and whose core values align with our deep commitment to science, innovation and above all, results without compromise. I look forward to the next stage in Medik8's journey, as we work together to bring our innovative products to a wider audience.' Founded in the UK, Medik8 has built a loyal customer base with its vitamin A-focused anti-ageing creams and serums. The brand is seen as a natural fit for L'Oreal's luxury division, which includes skincare and fragrance names such as Lancome, Aesop, and Miu Miu. Last year, sales in L'Oreal's luxe segment grew by just 2.7%, its weakest performance across divisions, as inflation pushed consumers toward more affordable alternatives. However, the unit scrored better than rival LVMH's beauty arm. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 hours ago
- Time of India
L'Oreal buys British skincare brand Medik8
HighlightsL'Oreal is set to acquire the British skincare brand Medik8, enhancing its portfolio in the rapidly expanding dermatological skincare market. Medik8 specializes in vitamin A-based anti-aging creams and serums, and L'Oreal aims to strengthen its presence in existing markets while expanding globally. L'Oreal's dermatological beauty division has been its fastest-growing sector, achieving revenues of 7 billion euros in the previous year, driven by increasing consumer interest in science-backed skincare products. L'Oreal is to acquire British skincare brand Medik8 , its owner, Britain-based private equity firm Inflexion, said on Monday, boosting the French cosmetics giant's offering in the fast-growing dermatological skincare market . The size of the deal was not disclosed. Medik8 focuses on vitamin A-based anti-ageing creams and serums. "The partnership with L'Oreal will allow Medik8 to deepen its presence in existing markets and expand globally. As part of the transaction, Inflexion will retain a minority shareholding in Medik8," the private equity firm said in a statement. L'Oreal's dermatological beauty division, which includes major brands like CeraVe , La Roche-Posay , and SkinCeuticals , has been its fastest growing in recent years, reaching revenues of 7 billion euros ($7.99 billion) last year, after growing almost 10% on the year before. The business, which also has the highest profit margin among its four divisions, has boomed on growing consumer interest in science-backed products, though growth has slowed recently due to rising competition. L'Oreal executives said this year they were pursuing acquisitions and looking to revive flagging growth. The company acquired Korean skincare brand, Dr.G, in December and also bought a minority stake in Oman-based perfume house Amourage last year.
Time of India
4 hours ago
- Time of India
Alcatel re-enters India, bets big on high-growth sub-₹30,000 segment
French brand Alcatel has re-entered the Indian smartphone market through a partnership with Nxtcell India , aiming at the high-growth Rs 12,000 – Rs 30,000 price segment. To stand out in the crowded mid-range market, the company is betting on its proprietary NxtPaper display technology , designed to offer a paper-like visual experience and reduce eye strain—positioning it as ideal for reading and long screen time. Alcatel recently launched three 5G smartphones : the V3 Classic 5G starting at ₹12,999, V3 Pro at ₹17,999, and the top-end V3 Ultra at ₹19,999. The V3 Ultra also includes a stylus and features the NxtPaper display, reinforcing its appeal for users who want to turn their smartphones into a more comfortable reading and productivity device. 'We want to make Alcatel as one of the first brands from India to go global. To start with, we will serve nearby markets and then later on, we will go to select international markets as well,' NxtCell India Chief Business Officer Atul Vivek told ETTelecom. Padget Electronics , a subsidiary of Dixon Technologies , will manufacture the devices. NxtCell holds brand authorisation for Alcatel in the Indian market. When asked about shipment targets, he mentioned it's difficult to precisely quantify shipment volumes. "However, we have already established a manufacturing capacity of 2 million units, which is scalable up to 3 to 4 million, depending on the market response and demand. From a capacity and investment standpoint, we're well-prepared and fully geared for a successful launch," Vivek said. He said India remains one of the world's largest and most dynamic smartphone markets, with a massive base of users ready to upgrade from older devices. 'There's a strong appetite for fresh designs, new innovations, better cleaner software experiences where many current players fall short. We see that as a clear opportunity.' "We are not just launching phones, we are building a brand that respects local preferences, partners with local ecosystems and delivers lasting value to Indian consumers," he said. Elaborating on the NxtPaper technology, he said, it's a four-in-one hardware-based display solution, not just software-driven. The screen can switch to an e-ink-like mode, significantly reducing blue light exposure, which is much easier on the eyes. This is where we saw a clear market gap and chose to differentiate ourselves with this innovative, patented technology. NxtCell has partnered with TCL, one of the global leaders in display technology, and signed a technology transfer pact for Alcatel smartphones . 'We are here in India for the long haul. We have already established a local manufacturing setup and are in the process of building robust distribution networks across the country. Our clear vision is to become one of the top three smartphone players in India within the next three years and everything we are doing is aligned toward achieving that goal,' Vivek adds. 'Our goal is to give existing users a compelling reason to upgrade their current devices and to appeal to young, first-time buyers looking for an international design experience combined with patented, cutting-edge technology. Alcatel is poised to be a viable and aspirational choice for both. And we believe Alcatel will offer a refreshing alternative in the market,' he said.
