New World Development (HKG:0017) is enhancing the terms of two loans for HK$87.5 billion, including pledging a prized property it already put up for collateral for another facility, Bloomberg News reported Tuesday, citing people familiar with the matter.
The developer will offer the Victoria Dockside shopping complex in Tsim Sha Tsui, Hong Kong as a second-ranking security behind banks, the report said, citing the sources.
The complex is part of about 40 other properties to be pledged as collateral for other loans, Bloomberg said.
New World is also seeking a new HK$15.6 billion loan with Victoria Dockside as collateral, the report said.
Chow Tai Fook Enterprises, the parent of Chow Tai Fook Jewellery (HKG:1929) and also controlled by NWD's owners, will provide a "letter of comfort" to show support for the two loans, the report said.
The loans will be used to refinance debt due in 2027 and beyond, Bloomberg said, citing sources.
New World did not immediately respond to a request for comment from MT Newswires.
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