KUALA LUMPUR (Sept 08): Genting Malaysia Bhd has proposed to issue medium term note programme worth RM5 billion, which has been assigned an initial long-term rating of AAA by Ram Rating Services Bhd.

In an announcement to Bursa Malaysia today, Genting Malaysia said its wholly-owned subsidiary, GENM Capital Bhd (GCB), had received approval from the Securities Commission Malaysia (SC) today, for the establishment of the medium term notes.

It said the medium term notes, which would have a programme tenure of 20 years from the date of first issuance, would be irrevocably and unconditionally guaranteed by Genting Malaysia.

The proceeds to be raised from the proposed medium term note programme are expected to be utilised for operating expenses, capital expenditure, investment, refinancing, working capital requirements and/or general funding requirements of Genting Malaysia and/or its subsidiaries.

It said the proceeds are to finance the development and/or re-development of the properties and/or resorts of Genting Malaysia and/or the group, including those on Genting Highlands.

CIMB Investment Bank Bhd and Maybank Investment Bank Berhad have been appointed as the joint principal advisers and joint lead arrangers for the proposed medium term note programme.

“The effects of any issuance under the proposed medium term note programme on Genting Malaysia’s consolidated earnings and consolidated earnings per share, are not expected to be material,” said the casino operator.

It added that based on Genting Malaysia’s audited consolidated statement of financial position as at Dec 31, 2013, and assuming the maximum amount of RM5 billion nominal value of medium term notes are issued as at Dec 31, 2013, the gaming group’s consolidated gearing would increase from 0.10 times to 0.30 times.