Big boost
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.
Read the full story, including extension terms, here.
And read our most recent analysis: NWD refinancing woes highlight commercial portfolio weakness (9fin)
AI jitters
Last week it was CoreWeave in the US. On Tuesday it was Elice in South Korea. On Wednesday it was DayOne in Singapore and NextDC in Australia. On a near-daily basis, fears of an overdone AI investment cycle have hammered debt instruments and stocks alike.
The first three names saw their market caps hit by concerns about what might happen next. But on Wednesday (21 October), NextDC’s shares closed 42% lower to erase about A$3bn ($2.11bn) in market value while its convertible bonds crashed to less than 70 cents in response to a more immediate reality: a local electricity supplier has hit pause on plansto power the firm’s Melbourne data...
