New World Development told lenders on an existing HK$88.2bn ($11.2bn) loan that it plans to increase its equity by HK$20bn, 9fin sources said.
Lenders were also told that New World’s controlling shareholder — the Cheng family — will fund part of the new equity, based on the proportion of shares they already own in the embattled Hong Kong-listed property developer.
The Cheng family held a roughly 45% stake in NWD as at the end of June through their private holding company Chow Tai Fook Enterprises, according to its 2026 annual report.
Extension terms include higher cap for VD pledge
Meanwhile, NWD is seeking all lenders’ consent to extend the HK$88.2bn refinancing it obtained in 2025 by two years. Sources said that the extension will allow the company to proceed with a rights issue to sell new shares to existing shareholders.
Lenders are being offered extension fees of 88bps to 112bps, with the higher fees for those whose loans have later maturities.
The earliest maturity of the jumbo refinancing, which was signed in 2025, is 30 June 2028, according to a 30 June 2025 stock exchange filing.
NWD also offered to repay 10% of the loan principal as...
