The firm, run by Hong Kong tycoon Henry Cheng’s family empire, last year reported its first annual loss in two decades and has one of the highest debt burdens among the city’s developers.

The deal today covers “approximately HK$88.2 billion of the group’s existing unsecured offshore financial indebtedness”, including bank loans, New World said in a stock exchange filing.

It is the largest-ever borrowing of this type in Hong Kong, according to Bloomberg News.

The developer said the deal terms “allow the group more flexibility to better manage its expected ongoing business and financial needs”.

CEO Echo Huang said New World will prioritise “reducing indebtedness and improving cash flow”.

“The group will continue to implement treasury management strategies and adhere to its existing financial obligations,” Huang added in a statement.

New World last month said it would defer interest payments of some bonds, a move that does not typically result in default but nevertheless indicated liquidity pressures, Bloomberg News reported.

The developer said total liabilities stood at HK$211 billion as of the end of last year, according to its interim report published in February.

Brock Silvers, managing director at private equity firm Kaiyuan Capital, told Bloomberg News that New World “may have dodged a bullet” but Hong Kong’s economy was still at significant risk.

“Developers remain overly indebted, and more companies are likely to need reorganisation,” Silvers said.

New World is one of Hong Kong’s top developers with a wide range of residential and commercial projects, including the K11 malls in the tourist district Tsim Sha Tsui.

Its real estate arm has been under stress as Hong Kong suffers the longest property market downturn since the SARS outbreak in 2003.

The group replaced its CEO twice in rapid succession last year.