SINGAPORE, March 1 – Casino operator Genting Singapore said late today it was seeking new investment opportunities after pricing S$1.8 billion (RM4.33 billion) worth of perpetual bonds at a lower-than-expected yield.
Genting will issue the perpetuals at par with a coupon of 5.125 per cent, a quarter of a percentage point below the indicative yield of 5.375 per cent per annum. Private banks accounted for 78 per cent of the order book, which totalled S$6 billion.
“This issue will put us in a very strong position to tap investment opportunities for new revenue streams,” Genting chief operating officer Tan Hee Teck said in a statement.
Perpetual bonds, as the name implies, have no maturity date, but the Genting perpetuals will pay an additional one percentage point in interest if they are not redeemed within 10 years.
DBS Group and HSBC were global coordinators and joint lead managers for the issue by Genting, which is rated Baa1 by Moody’s and A- by Fitch. Genting owns Resorts World at Sentosa, one of the city-state’s two multi-billion-dollar casino-resorts.
DBS and HSBC said the Genting perpetuals issue was the largest-ever single-tranche bond issue denominated in Singapore dollars, demonstrating the increasing depth of Asian local currency bond markets. – Reuters