NWD Forges Path Towards Debt Reduction with Strategic Refinancing and Sales

Friday, 30 August 2024, 00:30

NWD is making strides in its debt reduction strategy, aiming for a gearing ratio of below 40 percent by 2027. Significant recent repayments and refinancing efforts mark its commitment to curbing debt amidst market challenges. This article covers the company's financial maneuvers and property transactions.
South China Morning Post
NWD Forges Path Towards Debt Reduction with Strategic Refinancing and Sales

NWD, listed on the Hong Kong Stock Exchange, is actively pursuing its goal of a gearing ratio below 40% by 2027 through a series of financial strategies including repayments and refinancing.

In July and August alone, NWD completed over HK$16 billion (approximately US$2.05 billion) in loan arrangements, alongside refinancing initiatives for loans set for 2025. This follows a notable HK$35 billion in debt repayments made in the first half of the year.

The company emphasized diversified funding channels to maintain a robust financial stance while lowering its financing costs. Recently, NWD secured a 12-year, 1 billion yuan (US$140.3 million) loan with a 3.1% interest rate and a 15-year, 400 million yuan loan at 3.15%.

Moreover, NWD maintains competitive offshore loan rates, averaging between 1.1% to 1.2% above the HIBOR rate.

Earlier this month, NWD issued a US$400 million note with an attractive 8.625% coupon, generating significant interest with an oversubscription rate of 3.75 times.

In a separate move, NWD reportedly received a HK$9 billion offer for its K11 Art Mall in Tsim Sha Tsui from CR Longdation, a subsidiary of China Resources Holdings. This property yields a strong rental return of 5%.

NWD faces challenges with a net debt of HK$118.9 billion, prompting heightened efforts in asset disposals and cost-cutting measures.

For ongoing updates and a deeper insight into NWD's financial strategies and market maneuvers, stay tuned to our coverage.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe