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New World Development (NWD) is said to be planning to redeem its perpetual notes early, as per the Hong Kong Economic Times. When asked about NWD’s plan to redeem its perps, a spokesperson for the developer reiterated their earlier disclosures that mentioned “opportunistic bonds and perps buyback”. The news led to an 8.75 point jump in its 6.15% green perps callable in March 2025 to 68.8 cents on the dollar, yielding 33.8% to call. Interestingly, its $700mn 4.8% Perp callable on 28 September fell by 1 point to 43 cents, yielding 11.16% to worst. This can be explained by the perp’s fixed-for-life coupon (vs. a high reset on the 6.15% green perps of 3Y UST + 620bp). A similar move was seen in its other fixed-for-life perps.
NWD’s dollar bonds have been under pressure since last week after weakening in Hong Kong developers’ sales as well as rumors about the company having “pledged its projects” to obtain financing to which the developer dismissed such allegations. Its 4.8% Perp is currently trading at 43 cents on the dollar, yielding 11.16% to worst.