Hong Kong’s New World confirms loan facility talks with Deutsche Bank

Hong Kong property developer New World Development confirmed on Monday it is in discussions about a loan facility led by Deutsche Bank AG, but denied receiving any other funding proposals.

However, the firm did not reveal any other financial details about the loan facility being discussed with Deutsche, Germany’s largest lender.

Bloomberg News reported earlier, citing unnamed sources, that Hong Kong tycoon Henry Cheng’s family, also the firm’s controlling shareholder, was weighing a HK$10-billion ($1.28-billion) capital injection through a joint venture.

The report said the family was seeking a partner to provide a roughly similar amount for an equity stake, with Blackstone and CapitaLand among those in talks.

New World, which carries one of the highest debt ratios among its peers, secured an $11.2-billion loan refinancing package in late June, one of the largest yet in Hong Kong, designed to bring the company back from the brink of default.

Shares and bonds of the property developer had surged on August 7 after a media report on a potential take-private deal.