GGRAsia – Melco Resorts lists notes on Macau bond exchange

Melco Resorts lists notes on Macau bond exchange

Jun 30, 2021 Newsdesk Latest News, Macau, Top of the deck

Casino investor Melco Resorts and Entertainment Ltd says it is listing on Macau’s bond market, the Chongwa (Macao) Financial Asset Exchange Co Ltd, a series of senior notes in the aggregate amount of US$1.15 billion, issued earlier by a subsidiary of the gaming firm. The announcement was made on Tuesday by Melco Resorts and is “in support” of efforts at local and national level to promote Macau as a financial centre.

The senior notes to be listed on the Macau bond exchange were issued by Melco Resorts’ unit Melco Resorts Finance Ltd in December 2019 and January 2021. The 5.375-percent senior notes are due in 2029, U.S.-listed Melco Resorts said in Tuesday’s release.

Macau – encouraged by China’s central government – has pledged to diversify its economy beyond tourism and casino gambling, including via the creation of a market for financial services.

Listing of, and permission to deal in, the Melco Resorts notes were granted by the Chongwa (Macao) Financial Asset Exchange effective Tuesday (June 29), said Melco Resorts.

Commenting on the move, Melco Resorts’ chairman and chief executive, Lawrence Ho Yau Lung (pictured in a file photo), said the firm “gladly support[s] the diversified development of local Macau industries” through the company’s “wide-reaching series of corporate social responsibility initiatives.”

He added: “We are pleased to back the local financial industry through our newly announced senior notes listing on the Chongwa (Macao) Financial Asset Exchange as a solid confirmation of our support to the government’s directions on the diversified development of Macau, as well as our further contribution to the city’s continued development as a world financial and tourism hub.”

Melco Resorts is the latest among Macau’s casino operators to engage with the city’s bond market for listing of notes.

In May, Macau casino operator SJM Holdings Ltd said it had completed a listing on the Chongwa (Macao) Financial Asset Exchange of senior notes at 3.90 percent interest and due in 2026, to the value of HKD1.25 billion (US$161 million) and MOP300 million (US$37.5 million) respectively. SJM Holdings said at the time the move was “the first time that a major tourism business in Macau has issued debt instruments for listing” on the Macao exchange.

Also in May, Macau casino operator MGM China Holdings Ltd said that its US$750-million in 4.75-percent senior notes due in 2027 – originally listed in Hong Kong on March 31 – had also been listed on Macau’s bond market. MGM China stated at the time its exercise was the “first dual-listing of U.S.-dollar senior notes by an integrated resort hotel operator in Macau” involving the Hong Kong and Macau bond markets.