Hong Kong developer K Wah’s unit seeks to refinance loan

K. Wah International Holdings Limited (KWIH) has announced that its wholly-owned subsidiary, K. Wah Financial Services Limited, has secured a HK$4 billion revolving credit and term loan facility to partially refinance the drawn portion of an existing HK$4 billion club loan facility maturing in March 2024. The facility, arranged with 14 international and local banks, includes two tranches with a tenor of three years and two one-year extension options. The facility was oversubscribed, with the initial target increased to HK$4 billion due to strong demand from lenders.

The proceeds will also be used to support the Group’s general corporate funding requirements. The facility underscores KWIH’s strong banking relationships and prudent financial management, as noted by Paddy Lui, Executive Director of KWIH, who highlighted the robust response from the banking community. The facility is guaranteed by KWIH and includes participation from major banks such as The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong) Limited, and DBS Bank Limited.

This refinancing follows a broader trend of Hong Kong property developers seeking to restructure debt amid ongoing market challenges. For example, New World Development recently secured full lender approval for a HK$87.5 billion refinancing package. KWIH has also previously secured a HK$8 billion sustainability-linked loan to support its green development initiatives. Despite recent financial challenges, including a reported HK$869.3 million loss in 2025, KWIH remains focused on prime projects in Hong Kong and mainland China, leveraging its strong liquidity position to navigate market uncertainties.