New World Development: A rights issue to do right

Research evidence excerpt

New World Development: A rights issue to do right

J P M O R G A N Asia Pacific Credit Research

26 June 2026

Overweight

New World Development NWDEVL

A rights issue to do right Fitch:The above agency- ratings areOutlook:at the corporate- level

Asia Pacific Credit Research

Octus reported that New World Development (NWDEVL) is considering a near-

term rights issue, potentially as early as next week, with the Cheng family possibly Soo Chong Lim AC

underwriting about half and institutions the rest. NWDEVL has not announced (852) 2800-7387

soochong.lim@jpmorgan.com

anything publicly, and uncertainty remains around its 11 Skies lease obligations J.P. Morgan Securities (Asia Pacific) Limited

with the Hong Kong Airport Authority. However, it is our long-held view that an

equity injection is needed to repair the balance sheet ahead of the 2028 maturity

wall. If the raise proceeds, we expect NWDEVL to resume coupon payments on

its perps to remove the dividend stopper and it may be incentivized to redeem or

tender for the high-coupon prefs. We remain overweight senior bonds, still

yielding low-teens, but prefer the front end of the step-up perps, notably the

10.131% perp and 5.25% reset perp, given the sizable accrued/unpaid coupons due

by December 2026.

• Octus reported that New World Development (NWDEVL) is considering a

rights issue to pay down bank loans and public debts, the company said on

Monday. The controlling shareholder, the Cheng family, will potentially

underwrite about half of the offering, with the remainder to be underwritten by

institutional investors. The newswire added that the rights issue may be

launched as early as next week, citing several sources that have been briefed

on the matter. NWDEVL has not made any public announcement on the rights

issue.