{"id":187808,"date":"2025-11-18T21:29:16","date_gmt":"2025-11-18T21:29:16","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/187808\/"},"modified":"2025-11-18T21:29:16","modified_gmt":"2025-11-18T21:29:16","slug":"hong-kongs-new-world-development-to-reduce-1-3-billion-of-its-debt-after-early-bond-swap","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/187808\/","title":{"rendered":"Hong Kong’s New World Development to reduce $1.3 billion of its debt after early bond swap"},"content":{"rendered":"

HONG KONG, Nov 18 (Reuters) – Embattled New World Development (0017.HK), opens new tab<\/a> said on Tuesday it expected $1.3 billion of its debt, majority of it being perpetual bonds, to be cut after setting an early deadline for its dollar bond exchange offer.The firm, a major property developer in Hong Kong and the most indebted in the financial city, this month launched an exchange offer<\/a> of up to $1.9 billion that aims to cut its perpetual bonds by one-third. The early deadline for bondholders to have a cash incentive and a smaller haircut ended on Monday.<\/p>\n

Sign up here.<\/a><\/p>\n

Later on Tuesday, New World said it would raise the size of its new perpetual bonds for the swap, targeting up to $1.79 billion of fresh 9% notes \u2014 a step up from the initial $1.6 billion offer.<\/p>\n

The company aims to exchange part of its $4.5 billion outstanding perpetuals, which carry coupons of 4.125% to 6.25%, into the new bonds at a 53% haircut.<\/p>\n

In the remaining portion of the exchange offer, New World also plans to swap part of its $2.3 billion senior notes due 2027-2031, currently carrying coupons between 3.75% and 8.625%, to new 7% senior notes due 2031. The company said on Tuesday it expected to swap $107.3 million after the first deadline.<\/p>\n

The company added a new second deadline of November 25 in an announcement late on Tuesday.<\/p>\n

The offer came as New World seeks to increase cashflow and ward off defaults in a challenging property and financing environment.<\/p>\n

Earlier this year, the developer had deferred<\/a> coupon payments worth $77.2 million on four perpetual bonds that were scheduled for June. It also clinched a crucial $11.24 billion loan refinancing package<\/a> and a separate $760 million loan<\/a> facility to boost liquidity.<\/p>\n

“The Exchange Offers will enable the company to achieve significant deleveraging immediately,” New World said in a filing on Tuesday, adding it would reduce $1.02 billion of its outstanding perpetual bonds and $29.9 million of its senior notes after the early settlement.<\/p>\n

For bondholders who tendered early by November 17, the haircut would be reduced to 50% and they would be awarded $20 cash for each $1,000 bond.<\/p>\n

New World also plans to swap part of its $2.3 billion senior notes due 2027-2031, currently carrying coupons between 3.75%-8.625%, to up to $300 million new 7% senior notes due 2031.<\/p>\n

Haircuts for these notes are between 12% to 32.5% and bondholders would also get a slightly lower haircut if they tendered by Monday.<\/p>\n

The exchange offers will expire on December 2.<\/p>\n

Reporting by Clare Jim; Editing by Shri Navaratnam and Maju Samuel<\/p>\n

Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n

Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"HONG KONG, Nov 18 (Reuters) – Embattled New World Development (0017.HK), opens new tab said on Tuesday it…\n","protected":false},"author":2,"featured_media":187809,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[2786,82703,82499,36586,79,84893,82500,53515,84894,84897,82531,82710,82702,179,18,82578,105309,32356,82503,59750,19,17,105310,82510,90314,23083,105305,105306,105307,105308,82534,82533],"class_list":{"0":"post-187808","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-asia","9":"tag-asxpac","10":"tag-bact","11":"tag-biz","12":"tag-business","13":"tag-cdm","14":"tag-cmpny","15":"tag-cn","16":"tag-corpd","17":"tag-dbt","18":"tag-destousbsm","19":"tag-destseabs","20":"tag-easia","21":"tag-economy","22":"tag-eire","23":"tag-emrg","24":"tag-eqb","25":"tag-fin","26":"tag-fins","27":"tag-hk","28":"tag-ie","29":"tag-ireland","30":"tag-mtnot","31":"tag-publ","32":"tag-rea","33":"tag-real","34":"tag-reale","35":"tag-reale1","36":"tag-reop","37":"tag-tnc","38":"tag-topcmb","39":"tag-topnws"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115572831966501205","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/187808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=187808"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/187808\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/187809"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=187808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=187808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=187808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}