Latest news with #NWD
The Star
3 days ago
- Business
- The Star
Hong Kong bankers on edge over US$11bil loan
The stakes are so high that in many cases, the banks' chief risk officers have stepped in. — Bloomberg HONG KONG: Hong Kong bankers have become fixated on an US$11bil loan deal with unusually high stakes for the financial hub. New World Development Co (NWD), an embattled property developer controlled by one of Hong Kong's richest families, is aiming to complete one of the 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 are still talking, according to sources. Failure to reach a deal could lead to demands for immediate repayment. The repercussions would threaten both NWD 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, sources 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 NWD 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.' NWD aims to secure HK$87.5bil in refinancing. It has commitments exceeding HK$20bil from 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 SA along with several other financial institutions. NWD did not respond to a request for comment. 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 sources. A couple of other top Chinese, Japanese and Singaporean banks are in the final stages of approving the loan, according to sources. '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. — Bloomberg
The Standard
19-05-2025
- Business
- The Standard
Deep Water Pavilia plans to launch at least 90 flats via tender
NWD general manager of business and marketing for special projects Cannas Ho, second from left and other representative. Singtao
South China Morning Post
02-04-2025
- Business
- South China Morning Post
Adrian Cheng invests in medical equipment firm in first bet after exit as New World CEO
Adrian Cheng Chi-kong, the former CEO of New World Development (NWD), bought HK$20 million (US$2.57 million) worth of convertible bonds sold by a medical equipment leasing firm, in his first known investment since stepping down from the top job at the troubled developer last year. Advertisement Cheng's personal investment vehicle SummitEdge Capital bought the short-term securities issued by Ziyuanyuan Holdings Group on Wednesday, according to a Hong Kong stock exchange filing. The bet showed his confidence in the medical and healthcare industry, a person familiar with the deal said. Ziyuanyuan has a mandate to issue up to HK$100 million worth of bonds. The firm earlier placed HK$32 million of them on March 26 to Hainan Mingda Investment, a mainland-based company owned by Huang Pingan and Zhang Mingyuan, the firm said in a separate filing last week. The convertible bonds pay 6 per cent annual interest and mature after 18 months, according to the filing. They may be converted into the company's ordinary shares at HK$1.51 per share. If fully converted, Cheng and Hainan Mingda would own 2.71 per cent and 4.7 per cent of the firm's enlarged share capital, respectively. Office workers seen outside the developer's headquarters at the New World Tower in Central. Photo: Jelly Tse Cheng, scion of Hong Kong's third richest family, stepped down as CEO of NWD in late September, soon after the developer reported a record HK$19.7 billion loss for the year to June 2024. His successor Eric Ma Siu-cheung lasted two months, and was replaced by Echo Huang Shaomei.
South China Morning Post
03-03-2025
- Business
- South China Morning Post
Hong Kong developer New World plans to launch ‘Front Tower' office building in Hangzhou
Advertisement NWD, one of the most indebted developers in Hong Kong, said on Monday that it planned to launch Front Tower, a grade-A office building valued at 1 billion yuan (US$137 million) this year in the capital of eastern Zhejiang province, which is home to a number of tech companies including Alibaba Group Holding, DeepSeek and Unitree Robotics. Alibaba owns the Post. The announcement came just days after NWD said its core operating profit and revenue for the six months ended December 31 fell from a year earlier 'Hangzhou is driving high-quality economic development through the rapid growth of emerging industries and innovative technologies,' said New World executive director and CEO Echo Huang Shaomei in a press release. 'With its thriving innovation, the city is set to become a leading world-class hub for the artificial intelligence industry.' Front Tower has a total of 280,000 sq ft, and its floors range in size from 16,000 to 38,000 sq ft. The tower is located in Wangjiang New Town[comma] and the company said it was seeking to cater to growing demand for premium office space. Advertisement The tower is part of the New World City Arts Centre, an 8 million sq ft commercial complex that includes grade-A office buildings, a luxury hotel, a shopping centre and residential flats. It is about 2.5km from the West Lake and 1.5km from the Qiantang River, two of the city's most visited tourist attractions.
South China Morning Post
28-02-2025
- Business
- South China Morning Post
New World Development reports losses as debt ratio worsens amid property slump
New World Development (NWD), controlled by Hong Kong's third-richest family, reported weaker interim results in its underlying property business, suggesting the worst is not over as the city's most indebted developer struggled to contain its debt burden and loss of confidence among investors. Advertisement Earnings from its core business declined 18 per cent from a year earlier to HK$4.42 billion (US$567 million) in the six months to December 31, it said in a Hong Kong stock exchange filing on Friday. Revenue slipped 1.6 per cent to HK$16.8 billion. After accounting for almost HK$5 billion of one-off items, such as the erosion in the fair value of investment properties and cost of refinancing its bonds, the group incurred an interim loss of HK$6.63 billion, versus a profit of HK$502 million a year earlier, it added. 'The loss mainly arose from a drop in market value of projects in both development and investment properties, due to quick changes in market macro factors,' chairman Henry Cheng Kar-shun said. These included a slower-than-expected pace of interest rate cut and caution amid US policy shift and Beijing's stimulus measures, he added. 03:39 Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city The company's efforts to address its debt levels failed to improve as net gearing ratio rose to 57.5 per cent on December 31 from 55 per cent on June 30, its report showed. Consolidated net debt increased by less than 1 per cent to HK$124.6 billion over the six-month period.
