According to reports, New World Development's perpetual bond has fallen to a three-month low

According to Bloomberg, the price of New World Development's (00017.HK) perpetual bonds with a coupon rate of 6.15% has fallen by more than 4 cents per dollar face value, to 54.8 cents, marking the lowest level since February. Other dollar bonds issued by the group have also dropped by about 2 cents.

Since New World decided not to redeem the $345 million perpetual bonds before June 16, its liquidity predicament has become a market focus. The market is concerned about whether the company can pay interest on four perpetual bonds next month, with the first payment due on June 9.

According to bond documents obtained by Bloomberg, if there is a delay in payment, the company must notify investors 5 to 10 working days in advance. Although delaying interest payments on perpetual bonds typically does not constitute a default event, it may further undermine investor confidence