Investors are monitoring whether New World Development (HKG:0017) will redeem $345 million in outstanding perpetual bonds on Friday, which could signify stronger liquidity for the developer, The Standard reported Thursday, citing UBS.

The bank said should New World choose not to redeem the perps, the coupon could increase to 10.2% from 6.15%, indicating liquidity pressure, the report said.

New World could also opt to defer paying interest until June 9, helping the developer save about HK$1.9 billion in annual cash interest and boosting its ability to service its debt, the report said.

UBS maintained its "sell" rating for New World at HK$4, 75% lower than its net asset value of HK$15.9 per share, The Standard said.

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