The company has been grappling with tight credit conditions and a prolonged market downturn
Published Tue, Oct 6, 2026 · 02:58 PM
NEW World Development launched a debt exchange offer on Tuesday (Oct 6) that would allow bondholders to swap some notes due in 2027 and 2028 for new secured debt maturing in 2032.
The move comes as the Hong Kong property developer seeks to ease near-term repayment pressure and strengthen liquidity.
The company said a newly established unit, New VD BondCo, plans to issue up to US$600 million of new 7.375 per cent senior secured notes due in 2032 in exchange for existing notes.
New World, one of Hong Kong’s most indebted property developers, has been working to reduce its debt, sell assets and strengthen liquidity as it grapples with tight credit conditions and a prolonged downturn in the property market.
The exchange offer covers three US dollar-denominated note series with a combined outstanding principal amount of about US$991 million, including notes due in January 2027, June 2027 and February 2028.
New World said the offer was intended to optimise its debt maturity profile, enhance balance-sheet flexibility and improve its overall financial position. The offer is scheduled to expire on Oct 20.
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As part of its wider efforts to cut debt, New World last week expanded a loan facility by around HK$1 billion (US$127 million) and terminated its operating rights for a shopping mall next to Hong Kong International Airport. REUTERS
