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<Research>M Stanley: NEW WORLD DEV (00017.HK) Defers Interest Payment on Perpetual Bonds, Benefiting Cash Flow in ST, Raising Debt Burden in LT
NEW WORLD DEV (00017.HK) announced a delay in the payment of interest on four perpetual bonds totaling US$84 million (approx. $656 million), which were originally due in December 2...
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<Research>M Stanley: NEW WORLD DEV (00017.HK) Defers Interest Payment on Perpetual Bonds, Benefiting Cash Flow in ST, Raising Debt Burden in LT
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NEW WORLD DEV (00017.HK)  +0.050 (+1.101%)    Short selling $11.47M; Ratio 18.132%   announced a delay in the payment of interest on four perpetual bonds totaling US$84 million (approx. $656 million), which were originally due in December 2025 and will be accrued to the outstanding balance, Morgan Stanley released a research report saying.

The Company did not opt to redeem the US$345 million bonds due on 16 May, and the interest rate has jumped from 6.15% to about 10%. The Company is negotiating with banks to seek loan refinancing of $87.5 billion, and mortgaged most of its investment properties.

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The broker believed that these measures will benefit cash flow reserves in the short term but will increase debt burden in the long run.

NEW WORLD DEV has secured bank commitments for loan refinancing of $87.5 billion, according to foreign media. It is reported that the Company has pledged its Victoria Dockside in Tsim Sha Tsui to obtain another $15.6 billion (approx. US$2 billion) loan. Therefore, Morgan Stanley kept rating at Underweight for NEW WORLD DEV, with a target price of $6.5.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-05 16:25.)

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