Finance
New World Development secures up to $758 million loan from Deutsche Bank
Published by Global Banking and Finance Review
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
New World Development secures a $758 million loan from Deutsche Bank, using Victoria Dockside as collateral, to support its financing activities amid debt concerns.
(Reuters) -Hong Kong property developer New World Development said on Thursday it had secured a term loan facility of up to HK$5.9 billion ($758.62 million) from German multinational investment lender Deutsche Bank AG.
The news comes after New World clarified earlier this month that it was in talks with the German bank over a loan facility.
The facility will have an initial committed tranche of up to HK$3.95 billion and would be used for the group's ordinary course financing activities.
The loan will be backed by a first‑priority mortgage on the Victoria Dockside property and other assets related to it.
However, New World can continue to use Victoria Dockside as a collateral to secure additional financing for its business needs, the company said.
Despite clinching a crucial $11.24 billion loan refinancing package earlier this year, the company still needs additional funding to reduce its debt and sustain operations in a weak property market, it added.
Markets have been closely watching New World's debt issues, wondering if they might signal a sector crisis similar to the one that hit mainland China in 2021.
New World'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.
($1 = 7.7773 Hong Kong dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shreya Biswas)
A term loan is a type of loan that is repaid in regular payments over a set period. It is typically used for financing large purchases or investments.
Debt sustainability refers to a borrower's ability to manage and repay their debt without requiring debt relief or accumulating additional debt.
A mortgage is a loan specifically used to purchase real estate, where the property serves as collateral for the loan.
Corporate bonds are debt securities issued by corporations to raise capital, where investors receive periodic interest payments and the principal back at maturity.
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