Market News

By Eleanor Duncan

(Bloomberg) -- Canary Wharf Group’s bondholders have agreed to let the London docklands developer raise new debt, according to a regulatory filing, paving the way for it to refinance around £600 million ($760 million) of maturing notes. 

Canary Wharf’s owners, Qatar Investment Authority and Brookfield Corp. had sought permission from investors to raise new debt in order to refinance the company’s 2026 notes as well as £350 million of bonds maturing in April. Other bonds due in 2028 will be rolled over “in due course,” Canary Wharf said earlier. 

The new debt will be backed by some of Canary Wharf’s retail assets. 

The developer of the east London outpost has been under pressure due to falling property prices and tenants, including HSBC Holdings Plc and Clifford Chance LLP, moving to new offices in the City. 

As a back-up plan, Brookfield said it would commit to provide equity funding of £900 million if needed, according to a statement in November. QIA, which is owned by the Qatar sovereign wealth fund, said it may join that equity commitment at a later stage. If that happens, Brookfield and QIA will commit to equity funding of £450 million each, the November statement said.

Moody’s Ratings has called the plans “materially credit-positive” because of the “significantly reduced refinancing risk and the new shareholder commitment.”