GEN Malaysia unit early redemption on US$277mln notes

Global casino operator Genting Malaysia Bhd says a unit, GENM Capital Bhd, has completed an early redemption on MYR1.3 billion (US$276.9 million) in nominal value medium-term notes. The information was in a Wednesday filing to Bursa Malaysia.

The amount represents just over half of a MYR2.4-billion issuance conducted in August 2015.

The MYR1.3-billion in redeemed bonds had a 10-year tenure and a 4.90-percent interest rate. The balance of MYR1.1 billion issued in August 2015 had a five-year tenure and a 4.50% interest rate.

At the time they were issued, Genting Malaysia said proceeds were for “operating expenses, capital expenditure, investment, and/or working capital requirements of Genting Malaysia, including to finance the development and/or redevelopment” of the group’s properties “located in Genting Highlands, Pahang, Malaysia”.

The bonds were part of a medium-term note programme worth up to MYR5.0 billion in nominal value, announced in September 2014 on behalf of GENM Capital.

In June this year, Genting Malaysia said GENM Capital was issuing MYR400 million in medium-term notes.

At the end of February, Malaysia’s currency, the ringgit, fell to a 26-year low relative to the U.S. dollar but has since made some recovery.

Genting Malaysia operates Resorts World Genting, Malaysia’s only licensed casino property, at Genting Highlands. The group also runs casinos in the United States, the Bahamas, the United Kingdom, and Egypt.

Genting Malaysia reported first-quarter net profit of just under MYR36.7 million, on revenue that rose by 21.1 percent year-on-year to just above MYR2.76 billion.