Sidley Advises on New World Development’s New Exchange Offer

Sidley acted as international counsel to dealer managers Deutsche Bank AG, Hong Kong Branch and The Hongkong and Shanghai Banking Corporation Limited in connection with New World Development Company Limited’s (HKEX: 0017, New World Development) exchange offer, which resulted in the exchange of US$199.3 million of existing notes for US$189.3 million of new VD notes. The VD notes are supported by intercompany loans guaranteed by New World Development and secured over flagship property assets.

The exchange offer was launched on October 6, 2026, and settled on October 20 and October 23, 2026. The transaction follows Sidley’s role on New World Development's landmark exchange offer completed on December 5, 2025, in which approximately US$2.53 billion in aggregate principal amount of securities were exchanged for US$1.36 billion of new securities. The new exchange offer further optimized New World Development’s debt-maturity profile, enhanced balance-sheet flexibility and liquidity, and improved its overall financial position. This follow-on mandate highlights Sidley’s capabilities in advising on complex liability management transactions in the Asia Pacific region.

The Sidley team was led by partners Carrie Li and Vladimir Mikhailovsky (both Capital Markets), and included Joel Lam, Ken Ye, and trainee solicitor Linus Koh (all Capital Markets), Olivia Ngan, and Kelly Lam (both China Corporate and Finance). David Howe (Capital Markets) advised the trustee, GLAS Agency (Hong Kong) Limited, in the transaction.

Sidley is one of the most experienced international law firms executing high-profile debt offerings and complex liability management transactions in the Asia Pacific region. The Debt Capital Markets practice is widely recognized for its strong transactional track record and has received numerous accolades, including being regarded as a Band 1 firm by Chambers Greater China Region for 15 consecutive years, and named “Securities Firm of the Year” at Law.com International’s Asia Legal Awards 2024.