Genting returns to US dollar bond markets with US$1b offering

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KUALA LUMPUR (Jan 18): Genting Bhd said its wholly-owned subsidiaries, Genting Overseas Holdings Ltd (GOHL) and GOHL Capital Ltd, have successfully priced a US$1 billion offering of guaranteed unsecured fixed rate notes, representing the group's landmark return to the international US dollar bond markets since 2004.

In a statement today, Genting said the notes will be fully guaranteed by GOHL, which wholly owns the issuer GOHL Capital, adding that the notes have a keepwell deed with Genting Bhd.

It highlighted Moody's Investors Service and Fitch Ratings' rating of Baa1 and A-(EXP) respectively on the notes.

"The notes have been priced at 198 basis points over the 10-year US Treasury Note, at a price of 99.597 to yield 4.3%.

"The notes will be denominated in US dollars, and will bear fixed interest of 4.25% per annum, with interest payable semi-annually in arrear and shall rank pari passu with all other unsecured and unsubordinated obligations of the issuer," said Genting.

The group said the proceeds from the issuance will be used for general corporate purposes, including operating expenses, capital expenditure, investment, refinancing, working capital requirements, general funding requirements and for investments in other members of the group.

It said this may include investments for the development of the Resorts World Las Vegas project.

"We would like to thank all the very high quality investors for their participation and support in this offering," said Genting president and chief operating officer Tan Kong Han.

At the noon market break today, Genting rose 1 sen or 0.12% to RM8.30, with a volume of 1.18 million shares. It has a market capitalisation of RM30.91 billion.