Sunny Optical’s SLB observed its targets in 2025 and AFII rank these as 50:50 implying substantial uncertainty. Missing the target will result in the bond, which matures in July 2026, paying an additional 0.5% 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.
Based in Singapore, Jeannette focuses on credit research and analysis across the Asia-Pacific region. She brings 19 years of fixed income investing experience in emerging markets, Asian fixed income and China’s onshore bond market.
Based in Singapore, Rose has over 20 years’ experience in capital markets, most recently as a Senior PM at Conning Asia, and her research focuses on credit research and analysis on the energy transition in the Asia-Pacific region.
