Sunny Optical SLB: chance of receiving 0.50% redemption premium

The SPT in question, to reduce emissions by 20% versus a FY2021 baseline, has been lagging. The most recent figure at FY2024 was 17% above the baseline, indicating the challenges to meet the target.

At current trading levels around a clean price of 100.70 and Z-spread of approximately 80 basis points, the bond trades broadly in line with Greater China technology peers of similar credit quality and tenor, implying a low market-implied expectation of receiving the additional premium payment.