This article first appeared in The Edge Financial Daily on October 12, 2017

KUALA LUMPUR: Genting Bhd’s wholly-owned subsidiary GOHL Capital Ltd is issuing another US$500 million (about RM2.11 billion) worth of bonds to refinance the casino and hotel operator’s existing debt, and fund the group’s capital requirements.

In a statement to Bursa Malaysia yesterday, Genting said the “guaranteed notes” with a 4.25% annual coupon rate, matures on Jan 24, 2027. The bonds followed GOHL’s US$1 billion bond issuance in January this year.

Genting said net proceeds from the US$500 million bonds “are expected to be used to replace certain borrowings in GENT (Genting) and its consolidated entities and for other general corporate purposes of the GENT Group, including but not limited to, operating expenses, capital expenditure, investment, refinancing, working capital requirements, general funding requirements and/or making investments in other members of the Group, which may include investments for the development of Resorts World Las Vegas and/or other projects”.

Genting said GOHL, had on Tuesday completed the book-building for the US$500 million scheme, which will form a “single series” with the existing US$1 billion scheme.

The new bonds will be listed on the Stock Exchange of Hong Kong Ltd next Wednesday, read the statement.

Genting said Citigroup Global Markets Ltd is the global coordinator for the US$500 million bonds while JP Morgan Securities plc and SMBC Nikko Capital Markets Ltd are the joint book runners and joint lead managers for the offering.

Yesterday, Fitch Ratings said it was keeping its “A-” rating on Genting as it does not expect any impact from GOHL’s further planned note issue.

Genting shares slipped 13 sen or 1.35% to close at RM9.50 yesterday, for a market capitalisation of RM36.83 billion.