New World Development Company (HKG:0017) has received written commitments from all banks for its HK$87.5 billion loan refinancing deal, Bloomberg reported Thursday, citing people familiar with the matter.

The agreement is effectively complete, pending only procedural steps to finalize the loan documentation, the report said. The refinancing comes just before upcoming interest payments totaling $9.2 million, due Friday and Monday, on three Hong Kong dollar bonds.

According to Bloomberg, the refinancing deal, one of the largest of its kind in Hong Kong, concludes months of negotiations and offers critical breathing room for the debt-laden developer amid China's ongoing property downturn.

The terms required unanimous bank approval by June 30. Failing that, collateral backing the deal would have been released, and bank commitments would have been voided, the report added.

Attention is now shifting to whether the builder can raise another HK$15.6 billion through a loan secured by a first-ranking mortgage on its Victoria Dockside project. Part of the proceeds would go toward repaying the just-completed refinancing, Bloomberg News previously reported.

Shares of the company were up about 2% in recent trade on Friday.

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