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Hong Kong property developer New World Development has launched a debt exchange offer of up to $1.9 billion, aiming to restructure its outstanding perpetual securities, it said in an exchange filing on Monday. The company intends to issue up to $1.6 billion in new perpetual securities, with the remaining $300 million allocated to new notes. The move comes as the Hong Kong-based company seeks to manage its capital structure in a challenging financing environment. New World Development said the offer was aimed at extending debt maturities, boosting liquidity and balance sheet flexibility, and strengthening its financial position. The company is one of the several Chinese developers seeking to refinance debt and improve liquidity as the property sector faces sustained pressure from tighter credit conditions and regulatory scrutiny. New World Development's debt woes trace back to an ambitious expansion spree, which collided with Hong Kong's political unrest, the COVID-19 pandemic and a drawn-out real estate slump. Despite clinching a crucial $11.24 billion loan refinancing package earlier this year, the company still needs additional funding to cut its debt and sustain operations in a weak property market, it had said in September. Earlier this year, the company had secured a term loan facility of up to HK$5.9 billion ($759.58 million) from German multinational investment lender Deutsche Bank AG. ($1 = 7.7675 Hong Kong dollars)
