New World 17 | New World: More than 16 billion yuan in loan arrangements and debt repayments were completed in July and August, and more than 50 billion yuan in debt repayments were completed during the year – Hong Kong Economic Daily – Instant News Channel – Market Finance – Stock Market
▲ New World 17 | New World: Loan arrangements of more than 16 billion yuan were completed in July and August and debt repayments of more than 50 billion yuan were completed during the year
- New World completed more than HK$50 billion in loans and debt repayments in the first eight months
- Average overseas bank loan interest rate: HIBOR+1.1 to 1.2%
- New World hopes to increase domestic new loan interest rates and reduce costs
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Announced that it completed more than HK$16 billion in loan arrangements and debt repayments in July and August, part of which was to refinance loans due in 2025 in advance. Together with the HK$35 billion completed in the first half of the year, New World completed loan arrangements and debt repayments of more than HK$50 billion during the year.
New World said that the average interest rate of the group’s overseas bank loans is approximately Hong Kong Interbank Offered Rate (HIBOR) plus approximately 1.1 to 1.2%. New World stated that the latest issuance of a US$400 million bond with a 3.5-year term and a coupon rate of 8.625% is the first time a Hong Kong listed developer has issued a US dollar bond in more than two years, and ultimately attracted more than 100 accounts from institutional investors, private banks, etc. Subscription, the subscription amount exceeded 3.75 times.
New World has added two more RMB loans with interest costs about 2% lower than those of overseas bank loans.
Following its earlier disclosure that it is increasing mainland financing to reduce costs, New World said it has recently added a 12-year loan of 1 billion yuan with an interest rate of 3.1%, and a 15-year loan of 400 million yuan with an interest rate of 3.15%. RMB loans. Several more domestic loans are under discussion.
If the HIBOR in the latest three months is still 4.2%, the average interest rate of New World’s overseas bank loans is still over 5.3%, and the cost of new domestic debt is about 2% lower.
A major bank once wrote a report after New World announced its interim results at the end of February, pointing out that New World’s total liabilities including perpetual bonds as of the end of last year were 194 billion yuan, with an average financing cost of about 5.1%.