A subsidiary of casino operator Genting Malaysia Bhd, has issued debt paper worth MYR2.6 billion (US$642.87 million), in likelihood to finance the operation of the group’s gaming resorts.
Maybank Investment Bank Bhd, joint lead arranger for the exercise by the Genting Malaysia Capital Bhd unit, told Bursa Malaysia that Genting Malaysia or its subsidiaries could spend the money raised on developing or redeveloping establishments or resorts that they run – including Resorts World Genting in Genting Highlands in the Malaysian state of Pahang.
Maybank and CIMB Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the issue of the medium-term notes, with a nominal total value of MYR3 billion. The notes were issued in three tranches on Wednesday: MYR1.4-billion worth with a five-year tenor and a 4.98-percent coupon, MYR750 million of paper with a 10-year tenor and a 5.3-percent coupon, and MYR450-million worth with a 15-year tenor and a 5.58 percent coupon.
“We understand that the medium-term notes are to finance more of the MYR10.4 billion Genting Integrated Tourism Plan with debt,” Maybank analyst Samuel Yin Shao Yang said in a note.
Speaking before the formal announcement of the debt issuance, following a Bloomberg story on the matter, Mr Yin said Genting Malaysia’s previous intention had been to borrow half the money needed to put the Genting Highlands plan into action and pay for the other half via equity financing, but that this 50:50 split might now be skewed in favour of debt.
“At first glance, we gather that Genting Malaysia is just raising more medium-term notes as debt financing is still relatively cheap,” he said. “That said, we understand that with more equity financing saved, this will likely pave the way for more dividends this year.”
For its last financial year Genting Malaysia paid total dividends per share of MYR0.17, of which MYR0.08 was a special dividend. “For financial year 2018, we are forecasting total dividends per share of MYR0.11,” Mr Yin said. “We would not be entirely surprised if they pay out more dividends per share due to equity financing saved.”
The company had previously said its priority was the rolling out of the 10-year Genting Integrated Tourism Plan at Resorts World Genting, which is providing upgraded facilities including the Skytropolis indoor theme park and the 20th Century Fox World Theme Park, both of which could open this year.
First-quarter profit at Genting Malaysia was MYR358.2 million, an improvement of 10.6 percent compared to the same time last year.
In May’s announcement to the stock market, Genting Malaysia said the group’s total revenue grew by 7.9 percent to nearly MYR2.40 billion in the first quarter, from MYR2.22 billion a year earlier.
Aug 20, 2018A key to entrepreneur Kazuo Okada reasserting control over...
Aug 17, 2018Entrepreneur Kazuo Okada (pictured) has told GGRAsia that...
Jul 06, 2018The operator of the Widus Hotel and Casino at Clark...
Jun 11, 2018Cambodia has some attributes that make it potentially...
Jun 06, 2018Global gaming supplier International Game Technology Plc...
Sep 21, 2018Police in the city of Cixi, in the mainland Chinese province of Zhejiang, have recently broken up a gambling ring that took bets through a website set up overseas, Chinese-language media from the...
Sep 21, 2018
Sep 21, 2018
”Assuming that our [Tigre de Cristal] phase two project and the other future operators’ development plans remain on track, we may see the benefits of a ‘cluster’ effect [in the Primorye Integrated Entertainment Zone] as early as 2021”
Summit Ascent, lead developer of Tigre de Cristal