New World’s USD11bn loan push puts HK lenders on edge

New World Development is seeking to complete a HKD87.5bn (USD11bn) refinancing deal with over 50 banks by end-June, in one of Hong Kong’s largest corporate debt restructurings. The developer, grappling with mounting liquidity pressure and a property market downturn, has secured commitments from major banks including HSBC, Bank of China and Standard Chartered. About 10 lenders have agreed to terms, with others still in talks as internal approvals drag. Failure to finalise the deal could trigger immediate repayment demands, posing risks to lenders already burdened by rising non-performing loans. New World, one of Hong Kong’s most leveraged developers, has faced declining home values, rising vacancies, and investor concerns following a leadership shake-up and its first annual loss in two decades.