Galaxy Entertainment Group has invested RMB100m (US$15.6m) in so-called green bonds to support Macau’s economic diversification.
Macau.- Galaxy Entertainment Group has revealed it has invested RMB100m (US$15.6m) in green bonds issued by the Bank of China Macau Branch (BOC Macau). The casino operator said the move aim to assist with supporting the enhancement of Macau’s economy through the improvement of its financial market.
Last March, Galaxy Entertainment subscribed to HK$100m of social bonds to support companies impacted by Covid-19. The operator said at the time that proceeds from the bonds, dubbed Covid-19 Impact Alleviation Social Bonds, would be used to provide loans and finance to SMEs impacted by the pandemic.
In particular, assistance was going to be given to Macau SMEs that provide health care and medical supplies.
The company stated: “With this subscription and BOC Macau’s experience in the emerging CSR financial market, GEG hopes to support the green finance strategies outlined in the country’s 14th Five-Year Plan, advance Macau’s development in finance, and promote Macau’s green industry and diversification.”
Analysts suggest that the upcoming retendering of Macau’s casino licences is an opportunity to implement changes to the licence criteria.
A research paper from Pedro Cortes, managing partner at law firm Rato, Ling, Lei & Cortes, and Antonio Lobo Viela, an advisor on gaming-related matters, proposes requirements for operators to help the diversification of Macau’s economy.
According to the analysts, Macau has a weak economy that is “excessively dependent on tourism and gaming,” something that came starkly into view after during Covid-19 countermeasures.
Analysts also suggest there should be a requirement for proposals for investment in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) to create an international world-class tourism destination, recognising the uniqueness of Macau’s cultural and social resources.