Friday 29 Mar 2024
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KUALA LUMPUR (Apr 27): Genting Malaysia Bhd is establishing a medium term note (MTN) programme of RM3 billion in nominal value through its wholly-owned subsidiary GENM Capital Bhd.

In a filing with Bursa Malaysia, Genting Malaysia said GENM Capital has made a lodgement with the Securities Commission Malaysia (SC) under the regulator's Lodge and Launch Framework for the establishment of the MTN programme.

The MTN programme will have a tenure of 20 years from the date of the first issuance of MTNs, which will be irrevocably and unconditionally guaranteed by Genting Malaysia.

The MTN Programme has been assigned an initial long-term rating of AAA(s) by RAM Rating Services Bhd, said Genting Malaysia.

The MTNs may be issued at par or at a discount which shall be determined prior to each issuance of the MTNs, it added.

Net proceeds from the MTN Programme shall be used for operating expenses, capital expenditure, investment, refinancing, working capital requirements and/or general funding requirements, including to finance the group’s development and/or re-development of the properties and/or resorts, its filing read.

“The MTN programme is expected to provide the group with the flexibility to time its fund-raising exercises with varying nominal value and tenures in accordance with its funding requirements. The group will also be able to have access to a diversified pool of investors in the local capital markets,” it said.

Based on Genting Malaysia’s audited consolidated statement of financial position as at Dec 31, 2017 (FY17) and assuming the maximum amount of RM3 billion nominal value of MTNs are issued as at FY17, the group’s gearing would increase from 0.26 times to 0.34 times, before taking into consideration the use of proceeds and expenses relating to the MTN programme, the filing read.

CIMB and Maybank Investment Bank Bhd have been appointed as the Joint Principal Advisers and Joint Lead Arrangers for the MTN programme.

Genting Malaysia shares gained 10 sen or 2.03% to close at RM5.03 today, giving it a market capitalisation of RM28.46 billion.

Year-to-date, the counter has lost near 11% in market value from when it was trading at RM5.63 per share on Dec 29 last year.

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