New World Development’s bond prices rose against the trend
On Tuesday (10/3), with the Korean and Chinese markets still being closed, and the 10-year US Treasury yield hitting a new high since 2007 overnight, there was no major US dollar-denominated bond issuance in the primary Asia bond market. In the secondary market, the trading volume was still low, and the overall market sentiment was weak. The credit spreads of Asia IG widened by around 2~4bps. NWDEVL announced on Friday that it would significantly cut dividend and buy back some bonds to reduce leverage. Stock price continued falling after the holiday, but NWDEVL bond prices rose against the trend, outperforming its peers.
Important news
Hong Kong’s New World Development Group held an online conference call on Friday (9/29) and said that capital expenditures will be significantly reduced in the next 1-2 years, and dividends will be significantly cut. This dividend reduction is a one-time measure. When the business prospect improves, dividends will also rise. In addition, the company may buy back some bonds to reduce leverage. As of the end of June this year, cash on hand was about HK$54.5 billion, net debt-to-asset ratio was about 48.7%, borrowings due in fiscal year 2024 have been properly arranged for refinancing, and it is expected that the net debt-to-asset ratio will drop to mid-to-high 30% by fiscal year 2027.
Secondary market
· NWDEVL 2027 bonds traded near 13.3%
· NWDEVL 2029 bonds traded near 12.8%
新世界發展的債券價格逆勢走高
週二（10/3）由於韓國、中國市場仍皆休市，加上十年期美債收益率於前一晚再創2007年以來的新高，亞洲債市的初級市場無重大美元計價債券發行。次級市場方面，交易量仍較為清淡，且市場情緒偏保守，亞洲投資等級標的之信用利差走寬約2~4bps。。新世界發展於上週五表示將大幅刪減配息並買回部分債券以降低槓桿，受此消息影響，其股價於港股假期過後續跌，但債券價格逆勢走高，表現優於同業。
重要新聞
香港新世界發展集團於上週五（9/29）線上業績發佈會表示，未來1-2年資本開支大幅減少，且將大幅刪減配息，此次降低配息屬一次性措施，當未來大環境好轉時，配息亦將回升。此外，公司可能買回一部分債券，以降低槓桿。截至今年6月底，帳上現金約545億港元，淨負債資產比約48.7%，至2024財年到期的借款再融資已獲得妥善安排，且預期至2027年財年之淨負債資產比將降至約35~40%。
次級市場
- 新世界發展（NWDEVL）2027年主順位債券收益率約13.3%
- 新世界發展（NWDEVL）2029年主順位債券收益率約12.8%