Macau casino concessionaire SJM Holdings Ltd is reportedly considering issuing offshore yuan-denominated bonds in October, with a three-year term.
The casino firm aims to raise at least CNY1 billion (US$140.6 million), its first public debt offering in four years, said financial news outlet Bloomberg, citing unidentified sources.
It is expected that proceeds from the offering will fund development projects in Hengqin and for general corporate purposes, according to the news outlet.
The firm’s flagship operations are Grand Lisboa, a casino hotel on Macau peninsula, and Grand Lisboa Palace, its large-scale resort in the city’s Cotai district. The firm also runs casino operations at Hotel Lisboa (pictured in a file photo).
SJM Holdings announced late last year a plan to acquire a commercial property on Hengqin island – a piece of Chinese mainland territory next door to Cotai – to provide extra hotel accommodation.
In July, the company announced the implementation of a CNY724-million investment related to its Hengqin project.
The acquired premises “are to be retrofitted into a three-star hotel comprising approximately 250 rooms, with completion targeted within around 24 months of obtaining the requisite construction work commencement permit,” stated the company in its interim report published on Monday.
Bloomberg said in its report that SJM Holdings’ bond plan was not yet finalised, and details could change based on investor feedback.
On Monday, Moody’s Ratings affirmed the ‘Ba3’ corporate family rating of SJM Holdings, but changed the firm’s outlook to ‘negative’ from ‘stable’.
The rating agency said the change of outlook reflected “a high likelihood” that SJM Holdings’ financial leverage would “remain elevated over the next 12 to 18 months, given its weaker-than-expected results in the first six months of 2025”.
In an August filing, SJM Holdings said its unit SJM Resorts Ltd had signed a promissory agreement with the group parent Sociedade de Turismo e Diversões de Macau SA (STDM) to acquire a portion of Hotel Lisboa, for a total consideration of HKD529 million (US$68.1 million).
