Nine Dragons Paper drops most in 14 months on perpetual bond issue

Nine Dragons Paper (Holdings)

04/06/2024 07:39

** Shares of packaging paper products maker Nine Dragons
Paper (Holdings)  2689.HK  drop 9.5% to HK$3.72, set for biggest
one-day pct decline since April 2023, if trend holds
    ** Stock hits lowest since May 9; third-biggest pct loser on
Hang Seng Composite Index  .HSCI  
    ** Nine Dragons Paper says it plans to issue $400 mln 14%
senior perpetual capital securities, raising proceeds to
refinance existing bank loans and for general corporate purposes
    ** Citi downgrades Nine Dragons Paper to "neutral" from
"buy" and trims TP to HK$4.20 from HK$5.50, saying it views the
14% annual interest for the first three years of the senior
perpetual bonds is high 
    ** Citi says it cut co's earnings estimates for FY25-26E
amid higher interest expenses 
    ** Hang Seng Commerce & Industry Index  .HSNC  gains 0.7%,
Hang Seng Composite Index  .HSCI  climbs 0.6% and Hang Seng
Index  .HSI  adds 0.5%
    ** Stock down 3.1% YTD  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))