New World Development launches $14.8b debt restructuring plan

The company said the real estate sector has been adversely affected by market headwinds.

New World Development (NWD) has launched exchange offers for $14.8b (US$1.9b) of its outstanding perpetual securities and notes, according to a bourse filing.

The company said it is to optimise its debt profile, enhance its liquidity and improve its financial position amidst a challenging property market.

“The operating environment for real estate developers in Hong Kong, including the company, has been adversely affected by sustained market headwinds,” NWD said.

These factors, together with negative credit events, had contributed to heightened investor and creditor concerns regarding the financial condition and operational stability of sector participants, it added.

The company said participation would provide holders of the existing instruments an opportunity to acquire the new instruments and gain exposure to an enhanced credit profile linked to Victoria Dockside.