KUALA LUMPUR (Sept 9): Genting Malaysia Bhd’s proposed 20-year medium term notes (MTNs) of up to RM5 billion is expected to result in “manageable” net gearing of 0.2 times, according to RHB Research Institute Sdn Bhd.
In a note today, RHB said the MTNs' proceeds might be used to finance Genting Malaysia's Genting Integrated Tourism Plan.
“Upon completion of the MTNs issuance, we estimate that its net gearing would stand at 0.2 times (from net cash of RM1.9 billion as of June 2014), which we deem manageable.
“We believe this would help to fund its RM5 billion Genting Integrated Tourism Plan, a major 10-year master plan announced in Dec 2013,” RHB said.
The first phase of the revamp includes the development of the RM1 billion world’s first Twentieth Century Fox World theme park (opening in 2016) and a new 1,300-room hotel adjacent to First World Hotel, which will open in the first quarter of 2015.