Genting Malaysia unit redeems US$276.9m in medium-term notes

GENM Capital has completed an early redemption of over half of a 2015 issuance.

Malaysia.- Genting Malaysia announced in a Wednesday (July 10) filing to Bursa Malaysia that its unit GENM Capital has completed an early redemption on MYR1.3bn (US$276.9m) in nominal value medium-term notes. The amount represents over half of a MYR2.4bn (US$513.72m) issuance conducted in August 2015.

The redeemed bonds had a 10-year maturity and carried a 4.90 per cent interest rate, whereas the remaining MYR1.1bn (US$235.72m) issuance had a five-year tenure with a 4.50 per cent interest rate. On issuance, Genting Malaysia said the proceeds would be used for operating expenses, capital expenditure, investment, and working capital needs, including funding the development and/or redevelopment properties at Genting Highlands, Pahang.

The bonds were part of a medium-term note programme with a maximum value of MYR5bn (US$1.075bn) announced in September 2014 on behalf of GENM Capital. In June, Genting Malaysia announced the issuance of MYR400m (US$85.85m) in medium-term notes.

For the first quarter of the year, Genting Malaysia posted a 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.