Latest news with #BigTwo
Straits Times
29-05-2025
- Business
- Straits Times
Bankers on edge over $14 billion loan refinancing deal for embattled HK property giant New World
New World is controlled by the family of Henry Cheng, an avid player of a Chinese poker game called Big Two, whose fortune is estimated at US$22.9 billion (S$29.5 billion). PHOTO: NEW WORLD HONG KONG – Hong Kong bankers have become fixated on a HK$87.5 billion ($14.4 billion) loan deal with unusually high stakes for the financial hub. New World Development, an embattled property developer controlled by one of Hong Kong's richest families, is aiming to complete one of city's largest-ever corporate refinancing deals with more than 50 banks by the end of June after pushing back an initial deadline for this month. So far, at least 12 banks have agreed to terms while the rest - including Singapore lenders - are still talking, according to people familiar with the matter. Failure to reach a deal could lead to demands for immediate repayment. The repercussions would threaten both New World and many of the banks which are already suffering from a sharp rise in non-performing loans from commercial real estate. The stakes are so high that in many cases, the banks' chief risk officers have stepped in, people familiar with the matter said. Even chief executive officers of banks are closely monitoring the situation with frequent updates, the people added, asking not to be identified as the matter is private. 'A New World Development failure wouldn't break the system, but that destabilisation could be contagious,' said Brock Silvers, managing director at private equity firm Kaiyuan Capital. 'A 'delay & pray' strategy would buy time while doing little to alleviate underlying risk to the company or Hong Kong's broader financial system.' New World aims to secure HK$87.5 billion in refinancing. It has commitments exceeding HK$20 billion from Bank of China, HSBC Holdings and Standard Chartered, local lenders Bank of East Asia, Fubon Bank (Hong Kong), Hang Seng Bank, and French lender Credit Industriel et Commercial along with several other financial institutions. The other banks are in the process of securing internal credit approvals. A deal of this magnitude can take time as credit committees scrutinise every detail, raising numerous questions to evaluate the risks involved. Some banks are waiting for lenders with greater exposure to sign on before they can secure their own internal approvals, said the people. A couple of other top Chinese, Japanese and Singapore banks are in the final stages of approving the loan, according to other people familiar with the matter. 'If one or two lenders in the syndicate are unwilling to commit, will the others in the syndicate be willing to take up the rest of the refinancing? If yes, the impact to the banking sector would be limited,' said Cusson Leung, chief investment officer for KGI Asia. 'If a majority of the lenders in the syndicate are unwilling to commit, it is much more destabilising.' New World is controlled by the family of Henry Cheng, an avid player of a Chinese poker game called Big Two, whose fortune is estimated at US$22.9 billion (S$29.5 billion). The developer has built many of Hong Kong's landmarks over the past several decades. Its trophy properties include the commercial complex located at the core area of Tsim Sha Tsui waterfront in Kowloon district and the 11 Skies commercial complex project next to the Hong Kong International Airport. However, the developer has been mired in a two-year crisis of confidence amid mounting liquidity pressure. Home values in Hong Kong have fallen 28 per cent from an all-time high in 2021 and have been hovering at the lowest levels since 2016 in recent months. Residential property development in Hong Kong and mainland China account for about half of the company's revenue. Meanwhile, the city's office vacancy rate was near a historical high of 13.7 per cent in April, while office rents saw the 36th consecutive month of declines since May 2022, according to real estate services firm JLL. New World's net debt rose to 96 per cent of shareholders' equity as of the end of 2024, according to BI research, making it one of the most leveraged Hong Kong developers. Investors are increasingly skeptical of the firm's ability to manage the debt burden, after it reported its first loss in 20 years for the financial year ended last June. Adding to New World's woes, it changed its chief executive officer twice in two months, including the surprise sidelining of Adrian Cheng, Henry Cheng's eldest son. New World has multiple bond coupon payments due in June. The builder had total liabilities of HK$210.9 billion at the end of December 2024 and in June it has at least US$116.6 million of coupon payments due, including on four perpetual notes. The company has pledged around 40 properties as collateral, including its crown jewel, Victoria Dockside, to get refinancing. The developer spooked creditors about possible liquidity strains when it opted not to call a US$345 million 6.15 per cent perpetual bond before interest costs jump to over 10 per cent. The price of this perpetual bond has plunged 28 per cent to about 56 cents so far in May, the steepest monthly decline since January, according to data compiled by Bloomberg. 'The outcome of the loan refinancing is the near term catalyst for the bonds, as failure to refinance the bank loans now could lead to liquidity issues down the road,' said Leonard Law, a Singapore-based senior credit analyst at Lucror Analytics. The downturn in property has saddled banks with non-performing loans. The Bank of China's Hong Kong unit, Bank of East Asia, Hang Seng Bank and HSBC are among lenders with the biggest exposure to the city's commercial real estate sector. Hang Seng classified about 15.1 per cent of its HK$130.5 billion Hong Kong commercial property loans as credit-impaired at the end of last year, compared with less than 1 per cent in 2023. Still, most observers expect the banks to ultimately reach a deal with New World. About 20 per cent of Hong Kong's licensed bank loans were exposed to the property sector as of March, according to Jeff Zhang, a property analyst at Morningstar. The concentration of risk means if lenders play hardball, it could end up backfiring. Failure to reach terms would damage everyone. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Belfast Telegraph
29-04-2025
- Sport
- Belfast Telegraph
Linfield striker signs new one-year deal: ‘He has unfinished business at the club'
The 28-year-old joined the Blues from Big Two rivals Glentoran in July 2022, however his progress at Windsor Park has been hampered by serious knee injury sustained in February 2023.
BBC News
04-04-2025
- Sport
- BBC News
Watch Linfield lift the Gibson Cup live across BBC Sport NI
While there is still plenty left to play for in the Irish Premiership this season, the destination of the Gibson Cup has already been imperious season saw them crowned champions with six games remaining and they will be presented with the league title trophy after Saturday's game with Glentoran live on BBC Two NI, BBC iPlayer and the BBC Sport bring you live coverage of the final 'Big Two' game of the season from 12:45 BST with the trophy presentation to follow after Andrews will be joined by former Linfield manager David Jeffrey and former Glentoran captain Paul Leeman at Windsor Park with Derry City manager Tiernan Lynch alongside Thomas Kane in the commentary you can't get to the screen to watch, Sportsound will be on from the earlier time of 13:00 BST on Radio Ulster and BBC Sounds with live audio commentary of Linfield against Glentoran followed by the rest of the day's we'll have every game covered on the BBC Sport website too with all the goals and updates from every game in the Irish 5 April - Irish Premiership fixturesLinfield v Glentoran (13:00) - live on BBC Two NI, iPlayer & BBC Sport websiteCarrick Rangers v Portadown (15:00) - listen on Sportsound on Radio Ulster & BBC SoundsCliftonville v Ballymena United (15:00) - listen on Sportsound on Radio Ulster & BBC SoundsColeraine v Dungannon Swifts (15:00) - listen on Sportsound on Radio Ulster & BBC SoundsCrusaders v Larne (15:00) - listen on Sportsound on Radio Ulster & BBC SoundsGlenavon v Loughgall (15:00) - listen on Sportsound on Radio Ulster & BBC Sounds
Yahoo
25-03-2025
- Sport
- Yahoo
BBC confirms post-split live Irish Premiership matches
With the Gibson Cup on its way to Windsor Park, the focus for the Irish Premiership is now firmly on who can secure an automatic European spot for next season. Finishing second to Linfield will guarantee that for one club with another spot available through the end of season play-offs. As the race for that automatic spot heats up, BBC Sport NI will bring you the best of the action. On Tuesday 1 April, we'll bring you live coverage of the side currently in second spot - Larne - as they travel to Dungannon Swifts on BBC iPlayer. The final 'Big Two' game of the season will be live on BBC Two NI on Saturday 5 April with Linfield looking to put a dent in their rivals Glentoran's ambitions for that second-place finish. On the penultimate weekend of the season, we'll bring you Linfield's visit to Larne while on Saturday 26 April you'll be able to watch Larne against Glentoran with both games again on the BBC iPlayer. Full live coverage details Tuesday 1 April: Dungannon Swifts v Larne (19:45 BST) - BBC iPlayer Saturday 5 April: Linfield v Glentoran (13:00 BST) - BBC Two NI Friday 18 April: Larne v Linfield (19:45 BST) - BBC iPlayer Saturday 26 April: Larne v Glentoran (17:30 BST) - BBC iPlayer
BBC News
25-03-2025
- Sport
- BBC News
BBC confirms post-split live Irish Premiership matches
With the Gibson Cup on its way to Windsor Park, the focus for the Irish Premiership is now firmly on who can secure an automatic European spot for next second to Linfield will guarantee that for one club with another spot available through the end of season the race for that automatic spot heats up, BBC Sport NI will bring you the best of the Tuesday 1 April, we'll bring you live coverage of the side currently in second spot - Larne - as they travel to Dungannon Swifts on BBC final 'Big Two' game of the season will be live on BBC Two NI on Saturday 5 April with Linfield looking to put a dent in their rivals Glentoran's ambitions for that second-place the penultimate weekend of the season, we'll bring you Linfield's visit to Larne while on Saturday 26 April you'll be able to watch Larne against Glentoran with both games again on the BBC live coverage detailsTuesday 1 April: Dungannon Swifts v Larne (19:45 BST) - BBC iPlayerSaturday 5 April: Linfield v Glentoran (13:00 BST) - BBC Two NIFriday 18 April: Larne v Linfield (19:45 BST) - BBC iPlayerSaturday 26 April: Larne v Glentoran (17:30 BST) - BBC iPlayer
