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New World Development sells $700 mln green, social bonds

reuters.com · 06/09/2022 06:27
New World Development sells $700 mln green, social bonds

- Hong Kong major developer New World Development NDVLY sold a total of $700 million in green perpetual bonds and social bonds, the first such dual tranche issuance in the market, according to term sheets seen by Reuters on Thursday.

The $200 million five-year social bonds were priced at a coupon of 5.875%, while the $500 million perpetual green bond had a 6.15% coupon.

The firm will use the proceeds on social and green projects, according to the documents.

"Corporations and financial institutions will become more active in the social bond market as the pandemic accelerates private issuers' interest in social considerations," New World Chief Financial Officer Edward Lau said in a statement.

HSBC, Mizuho Securities, Morgan Stanley, Standard Chartered Bank and UBS are the joint bookrunners.

The dual-tranche issue reopened the perpetual bond market in Asia and for gaining strong investor appetite, UBS head of DCM syndicate for Asia Terry Schmassmann said.

(Reporting by Clare Jim; Editing by Edmund Blair)