Genting Malaysia issues US$84.7m in medium-term notes

Funds will be used to finance operating expenses, capital expenses, investments, refinancing and/or working capital requirements.

Malaysia.- Genting Malaysia announced on Monday (June 10) the issuance of MYR400m (US$84.7m) in medium-term notes. According to the company’s statement to Bursa Malaysia, the funds raised will be allocated towards operational expenses, capital expenditures, investments, refinancing, working capital, and funding needs, including the development or redevelopment of the group’s properties.

The issuance includes two tranches. The first involves MYR300m (US$63.5m) under the group’s MYR5bn (US$1.1bn) medium-term notes programme, with a tenure of five years and a coupon rate of 4.92 per cent per annum, payable semi-annually. The second tranche consists of MYR100m (US$21.2m) from the company’s MYR3bn (US$635m) medium-term notes programme, with a 14-year tenure and a 5.28 per cent coupon rate, also payable semi-annually.

For the first quarter of the year, Genting Malaysia posted net profit of MYR36.7m (US$7.8m), which compares to a net loss of MYR45.4m (US$9.65m) a year earlier. Revenue was MYR2.76bn (US$586.87m), up 21.1 per cent in year-on-year terms but down 1.6 per cent sequentially.

The company attributed the increased revenue in the leisure and hospitality operations in Malaysia to a higher overall volume of business from gaming and non-gaming segments at Resorts World Genting (RWG). It expressed caution regarding the short-term outlook of the leisure and hospitality industry but said it remains optimistic about the long-term outlook.