GGRAsia – Genting Bhd issuing US$2.39bln in new notes

Genting Bhd issuing US$2.39bln in new notes

Sep 18, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

Malaysia’s Genting Bhd says its wholly-owned unit Genting RMTN Bhd has made a lodgement with the Securities Commission Malaysia for the establishment of a medium-term-notes programme in the amount of MYR10.0 billion (US$2.39 billion).

Genting Bhd is parent of the casino and plantations network of businesses founded by the Lim family.

Each note shall have a tenure of at least one year, said Genting Bhd in a Tuesday filing to Bursa Malaysia.

The gaming conglomerate said the net proceeds from the new notes programme would be for “operating expenses, capital expenditure, investment, refinancing, working capital requirements, general funding requirements and/or other general corporate purposes”.

The notes programme has been assigned an initial long-term rating of AAA by RAM Rating Services Bhd, according to the filing. The notes may in the future be listed on Bursa Malaysia Securities Bhd and/or any other stock exchange “provided that all regulatory approvals are obtained,” Genting Bhd added.

The Genting group – directly and via its subsidiaries – operates casinos in a number of jurisdictions, including Malaysia, Singapore, United States and the Bahamas; and in the United Kingdom and Egypt. The group is also developing the Resorts World Las Vegas project in Nevada, in the United States, while the group’s casino complexes in Singapore and Malaysia are undergoing multi-billion-dollar expansions. The Genting group also has its eyes on a Japanese casino licence.

In August, Fitch Ratings Inc revised its outlook on Genting Bhd and on its wholly-owned units Genting Overseas Holdings Ltd and Resorts World Las Vegas LLC, to “negative” from “stable”.