Friday 29 Mar 2024
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KUALA LUMPUR (Jan 19): Genting Malaysia Bhd's (GENM) subsidiary GENM Capital Bhd will redeem its RM1.4 billion medium term notes (MTN) next Friday (Jan 28) ahead of the MTN scheme's maturity date of July 11, 2023, according to facility agent Maybank Investment Bank Bhd.

According to Maybank's filing with Bank Negara Malaysia's (BNM) Fully Automated System for Issuing/Tendering (FAST) website, GENM Capital's notice dated Jan 14 indicated the early redemption of the MTN under stock code number UI180083 next Friday, which is part of its RM3 billion MTN programme.

According to Cbonds' website, GENM Capital's UI180083 MTN programme has an annual interest rate of 4.98%.

The early redemption comes just as cruise ship operator Genting Hong Kong Ltd filed to wind up the company on Wednesday, after the latter warned last week of a potential cross default amounting to US$2.78 billion (approximately RM11.66 billion) due to the insolvency of its indirect wholly-owned German-based subsidiary MV Werften Holdings Ltd as negotiations with the German government to rescue the unit had failed.

Genting Hong Kong is controlled by Tan Sri Lim Kok Thay, who owns 75.5% of the company. Lim holds 44.8% in flagship Genting Bhd, which in turn controls 49.5% of GENM, 52.7% of Genting Singapore Ltd (GENS) and 55.4% of Genting Plantations Bhd, according to Genting's 2020 annual report.

Kok Thay is chairman and chief executive officer (CEO) of both Genting and Genting Hong Kong, and deputy chairman and CEO of GENM and executive chairman of GENS.

GENM's financial statements for the third quarter ended Sept 30, 2021 (3QFY21) showed its total borrowings had risen to RM13.1 billion from RM9.39 billion as at end-December 2020, with RM12.91 billion of long-term borrowings and RM203.8 million of short-term borrowings.

GENM Capital also, on May 11 last year, made an early redemption of RM1.25 billion of the RM2.60 billion in nominal value of MTNs issued on March 31, 2017.

GENM narrowed its net loss to RM289.25 million for 3QFY21, from RM704.64 million a year earlier, despite revenue dropping 42% to RM826.27 million from RM1.42 billion, as its overseas ops maintained their strong recovery momentum. For the cumulative nine months ended Sept 30, 2021, it almost halved its net loss to RM1.12 billion from RM2.02 billion in the same period last year, though revenue shrank to RM2.27 billion from RM3.49 billion.

News of Genting Hong Kong's winding-up soured trading sentiments for both GENM and Genting. GENM's share price closed six sen or 2.07% lower at RM2.84, giving it a market capitalisation of RM16.86 billion, while Genting fell eight sen or 1.74% to RM4.53, for a market value of RM17.56 billion.

Edited ByLam Jian Wyn & Tan Choe Choe
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