GEN Malaysia issues US$564-mln mid-term notes

Aug 25, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Genting Malaysia Bhd – an operator of casino properties in Malaysia, the United States, the Bahamas and the United Kingdom – said on Monday it has issued MYR2.40 billion (US$564 million) in medium-term notes under a programme with an aggregate nominal value of MYR5 billion.

The proceeds will be used for “operating expenses, capital expenditure and/or working capital requirements of Genting Malaysia including to finance the development and/or redevelopment of the properties of Genting Malaysia located in Genting Highlands, Pahang, Malaysia,” said a company filing to Bursa Malaysia.

The first tranche of notes, sized at MYR1.10 billion and with a 5-year maturity, carry a coupon of 4.50 percent per year, payable semi-annually. The second tranche, sized at MYR1.30 billion and with a 10-year maturity, have a coupon of 4.90 percent, also payable semi-annually.

CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the medium-term note programme, the filing showed.

Analysts at Maybank IB Research said in a note in July that the MYR4-billion Phase 1 of the ‘Genting Integrated Tourism Plan’ – a revamp scheme for the Resorts World Genting casino resort (pictured) at Genting Highlands – “should be fully completed by end-2016”. It will include a 20th Century Fox World theme park, and a new casino called Sky Plaza aimed at premium mass gamblers making high minimum bets in cash.

On July 2, shareholders of Genting Malaysia approved a mandate to sell the company’s entire 17.81 percent interest in casino ship operator and Philippines casino investor Genting Hong Kong Ltd. Genting Malaysia said it expected to raise at least US$472.2 million gross from the proposed sale.

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