This article first appeared in The Edge Financial Daily on January 17, 2020

KUALA LUMPUR: Genting Hong Kong has raised US$900 million (RM3.66 billion) via the sale and leaseback of one of Dream Cruises’ cruise ships — the 2016-built, 150,000-gross-ton Genting Dream.

In a statement yesterday, the company said part of the proceeds were used as repayment for the US$502 million outstanding bank loan for Genting Dream.

The transaction, said Genting Hong Kong, is the first ever to be closed with a consortium of four Chinese leasing companies — Bank of Communications Financial Leasing Co Ltd, CMB Financial Leasing Co Ltd, CCB Financial Leasing Co Ltd, and China Development Bank Financial Leasing Co Ltd.

DNB Markets acted as adviser to Genting Hong Kong.

“We are very appreciative of the consortium for supporting Genting Hong Kong in the refinancing of Genting Dream which allows a longer repayment period with a balloon payment at the end of 12 years,” said Genting Hong Kong chairman and chief executive officer Tan Sri Lim Kok Thay.

“With the completion of this transaction, the group is now focusing on launching new summer itineraries for Dream Cruises which will showcase the best of Southeast Asia with exciting new destinations including Christmas Island and Belitung in addition to popular destinations such as Palawan and Kota Kinabalu.

“We are looking forward to the highly anticipated debuts of Crystal Endeavor in August this year and of Global Dream in 2021,” Lim added.

He said in just over three years of operation, Dream Cruises has grown to its current fleet of Genting Dream, World Dream, and Explorer Dream and has received prestigious international awards and accolades in Asia and across the globe.

Recognised worldwide by the international cruise and travel industry and consumers, Lim said Genting Dream and World Dream earned high marks in the renowned Berlitz Cruising and Cruise Ships 2020 guide, ranking eighth and ninth respectively in the “Large Resort Ship” category.

Genting Dream, operating from Singapore, and World Dream, from Hong Kong/Nansha (Guangzhou), are the only two ships included in the Top 10 to homeport year-round in Asia, he said.