Hong Kong property giant New World Development has successfully entered a refinancing arrangement, covering HKD88.2 billion (USD11.3 billion) of offshore financial debt, setting a record for the largest transaction of its kind in the city’s history.
Linklaters, A&O Shearman, Harneys and Johnson Stokes & Master advised parties involved in the transaction.
In an announcement published on the HKEX, New World Development refinanced part of its existing offshore unsecured financial debt with new bank loans. It also aligned the terms of existing offshore loans with the new financing terms.
The new loans have different maturity dates, with the earliest being 30 June 2028, providing three years of relief for the indebted developer.
Both Linklaters and A&O Shearman said this project had been large and complex. Local media reported that the mega deal involved dozens of banks based on the mainland, Hong Kong and overseas.
Linklaters counselled New World Development on Hong Kong and UK law, with partners William Liu, Bernard Chain, Maggie Ng, Terence Lau and Roger Cheng leading the team alongside counsels Lee Suern and Roberta Cheung.
The firm highlighted that the deal was unprecedented in both scale and complexity and was “successfully executed within an incredibly compressed timeline”.
Harneys advised New World Development on British Virgin Islands and Cayman Islands law, with Hong Kong office’s managing partner Paul Sephton leading the team. JSM’s real estate team, led by partners Robert Lynn and Wayne Cheng, acted as Hong Kong real estate counsel to the property giant.
A&O Shearman advised the lenders and agents, with the team including partners Roger Lui, Yvonne Ho and Cindy Lo, as well as counsel Welber Yim.
The latest financing arrangement has been seen as a lifeline for the property giant, which has faced pressure to repay its short-term debt. At the end of last year, the company had HKD146.5 billion in loans and bonds, with around HKD32.2 billion due within a year, while its cash level stood at HKD21.4 billion. New World Development said this refinancing would enhance its financial flexibility.
