New World Development Co Ltd Faces Challenges in Securing $2 Billion Loan

In recent financial news, New World Development Co Ltd, a prominent real estate development company listed on the Hong Kong Stock Exchange, has encountered difficulties in securing a significant loan. The company missed its self-imposed deadline to finalize an up to HK$15.6 billion (approximately US$2 billion) loan led by Deutsche Bank AG. This development comes despite the company having closed a major refinancing deal the previous month.

According to reports from Bloomberg, the challenges in completing the loan are attributed to the reluctance of some of New World’s existing financiers to increase their exposure to the developer. Deutsche Bank is actively seeking to attract new lenders to join the syndicated loan, as the current commitments from existing financiers remain insufficient.

The loan, which was initially set to be finalized by July 11, is still under negotiation. It is not uncommon in the syndicated loan market for such deadlines to be extended, allowing borrowers to finalize deals based on the progress of ongoing negotiations. Investors are closely monitoring the situation, given the potential implications for New World Development Co Ltd’s financial stability.

As of July 14, 2025, New World Development Co Ltd’s stock was trading at HKD 5.55, reflecting a significant drop from its 52-week high of HKD 10.86 in October 2024. The company’s market capitalization stands at approximately HKD 14.32 billion, with a negative price-to-earnings ratio of -0.756083, indicating ongoing financial challenges.

New World Development Co Ltd, established in 1972, operates through various subsidiaries in Hong Kong, focusing on real estate development, property management, and other diversified business activities, including infrastructure, telecommunications, and media. For more detailed information, stakeholders can visit the company’s website at www.nwd.com.hk .