New World Development (00016) has signed a 5-year syndicated loan agreement worth 23 billion Hong Kong dollars with 23 mainland, international, and local financial institutions, including Bank of China Hong Kong, HSBC, Citibank, OCBC Wing Hang, Credit Agricole, and Mizuho Bank, among others. The loan was oversubscribed nearly 5 times, demonstrating strong market confidence in the company’s financial stability.
Chairman and Managing Director of New World Development, Adrian Cheng, stated that a portion of the funds will be used for debt refinancing, while the remainder will be allocated towards operational funding, in line with the group’s prudent financial management principles.
In response to the current economic environment, Adrian Cheng emphasized that the group will continue to adhere to prudent financial practices, placing a high priority on cash flow management. This includes strict control over capital expenditures and the ongoing launch of residential projects for sale. Additionally, the company plans to sell completed residential units and non-core properties to ensure sufficient cash flow.
Amid challenging market conditions, New World Development remains committed to upholding sound financial principles and strategies, positioning the company for long-term success and sustainability in its operations.