Datang Renew's stock plummeted 5.49% during intraday trading on Thursday, following the company's announcement of a major bond redemption.
The power supplier disclosed in a Hong Kong bourse filing that it will not exercise the renewal option for its 1.9 billion yuan renewable corporate bonds and will redeem the notes in full on June 26. The bonds were issued in June 2023 with a fixed coupon rate of 3.20% and had a three-year basic interest-bearing cycle with an option to extend the maturity by another three years.
Investors reacted negatively to the news, likely concerned about the company's liquidity position and the financial implications of redeeming such a substantial amount of debt without renewal, which could impact future financing costs.
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