By William Gullotti
Buffalo, N.Y., June 17 – Hong Kong’s New World Development Co. Ltd., via two issuing subsidiaries, priced $700 million of guaranteed perpetual capital securities and guaranteed five-year notes, according to two listing notices with appended offering circulars on Friday.
NWD (MTN) Ltd. is the issuer for the $200 million 5 7/8% five-year notes, priced at 99.808, under its $7 billion medium-term note program.
NWD Finance (BVI) Ltd. is the issuer for the $500 million perpetual capital securities, which priced at par and have a 6.15% coupon.
Both series are guaranteed by the parent.
The initial 6.15% distribution rate for the perpetuals will reset on June 16, 2025, after which it will reset to Treasuries plus 300 basis points. The distribution rate will reset every three years.
Distribution payments may be deferred at the issuer’s option, which will subject the issuer to certain restrictions. A 3% margin increase will be applied to the distribution rate if a change of control occurs and the securities are not subsequently redeemed.
The five-year notes are redeemable at par plus interest at any time for taxation reasons or at the issuer’s option starting March 16, 2027.
The perpetuals may be redeemed at the issuer’s option at par plus interest starting March 16, 2025. Multiple triggering events exist which may also cause an early redemption at any time, also at par plus interest, including tax reasons, accounting reasons or minimum outstanding amount.
In both cases, noteholders will be able to put the notes at par plus interest if a change of control occurs.
HSBC, Mizuho Securities, Morgan Stanley, Standard Chartered Bank and UBS are the joint global coordinators, joint lead managers and joint bookrunners.
HSBC and UBS are also serving as joint social and green structuring banks.
Proceeds from the offerings will be used to finance or refinance eligible social projects under the company’s sustainable finance framework.
Listings for the notes are expected on the Hong Kong Exchange effective June 17.
New World Development is a Hong Kong-based conglomerate.
| Guarantor: | New World Development Co. Ltd.
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| Amount: | $700 million
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| Issue: | Notes
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| Bookrunners: | HSBC, Mizuho Securities, Morgan Stanley, Standard Chartered Bank and UBS
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| ESG structuring banks: | HSBC and UBS
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| Pricing date: | June 8
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| Issue date: | June 16
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| Listing date: | June 17
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| Distribution: | Regulation S
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| Five-year notes
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| Issuer: | NWD (MTN) Ltd.
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| Amount: | $200 million
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| Maturity: | June 16, 2027
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| Coupon: | 5 7/8%
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| Price: | 99.808
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| Call options: | At any time for taxation reasons at par plus interest; at the issuer’s option at par plus interest starting March 16, 2027
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| Change of control: | At par plus interest
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| ISIN: | XS2488074662
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| Perpetuals
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| Issuer: | NWD Finance (BVI) Ltd.
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| Amount: | $500 million
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| Tenor: | Perpetual
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| Coupon: | 6.15%; resets to Treasuries plus 300 bps on June 16, 2025 with subsequent resets scheduled every three years; distributions may be postponed at the issuer’s option
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| Price: | Par
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| Yield: | 6.15%
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| Call options: | At the issuer’s option at par plus interest starting March 16, 2025; multiple conditional calls at par plus interest at any time triggered by tax reasons, accounting reasons or minimum outstanding amount
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| Change of control: | At par plus interest
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| ISIN: | XS2435611327
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