GGRAsia – Studio City Finance lists US$1bln in bonds on Macau bourse

Studio City Finance lists US$1bln in bonds on Macau bourse

Jul 27, 2021 Newsdesk Latest News, Macau, Top of the deck

Studio City International Holdings Ltd, promoter of the Studio City casino resort in Macau, has announced the listing of US$1.1-billion in fixed-rate, 5.000-percent bonds due in 2029, on Macau’s bond market, the Chongwa (Macao) Financial Asset Exchange Co Ltd – known also as MOX – according to a Monday notice lodged with the bourse.

The notes were issued by the resort promoter’s subsidiary, Studio City Finance Ltd, and the listing took effect on Monday. The Studio City property (pictured) is in turn a subsidiary of Melco Resorts and Entertainment Ltd, led by entrepreneur Lawrence Ho Yau Lung, and which supplies the Macau gaming licence for the property.

The joint global coordinators, joint bookrunners and joint lead managers for the bond listing are respectively the Deutsche Bank and Morgan Stanley banking groups.

“Following the first listing of senior notes issued by a subsidiary of Melco on the MOX in June 2021 and the Studio City Finance senior notes, the aggregate amount of notes listed by the Melco group will be the largest in Macau for any non-financial institution,” claimed a Monday press release issued by Studio City Finance.

On June 29, Melco Resorts Finance Ltd placed with the Macau exchange US$1.15-billion in 5.375 percent senior notes due in 2029.

“The listings showcase Melco’s support for the local financial trading platform, and further demonstrate Melco’s confidence in the city’s further development as a world-recognised financial hub and tourism centre,” added the Studio City Finance announcement.

In May, Studio City Finance announced an international offering of US$350 million, 5.000-percent senior notes due 2029. In January, it had issued US$750 million in aggregate principal amount, regarding 5.000-percent notes due 2029.

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.