Genting unit’s US$1b notes oversubscribed 2.8 times

PETALING JAYA: Genting Bhd’s indirect wholly owned subsidiary GOHL Capital Ltd has completed the book-building process for its US$1 billion (RM4.46 billion) 4.25% notes due 2027, with an oversubscription rate of 2.8 times.

In a filing with the stock exchange, Genting said the transaction garnered orders from 200 accounts, with a sizeable order book of over US$2.8 billion, achieving an over- subscription ratio of 2.8 times.

The notes will be fully and unconditionally guaranteed by Genting’s wholly owned subsidiary Genting Overseas Holdings Ltd, which owns 100% stake in GOHL Capital.

The notes have been priced at 198 basis points over the 10-year US Treasury Note, at a price of 99.597 to yield 4.30%. It will bear a fixed interest of 4.25% per annum, with interest payable semi-annually in arrear and shall rank pari passu with all other unsecured and unsubordinated obligations of the issuer.

Genting said the notes represent the group’s landmark return to the international US dollar bond markets since 2004.

Moody’s Investors Service, Inc. has assigned a rating of “Baa1” to the notes whilst Fitch Ratings has assigned an A-(EXP) expected rating to the notes.

Net proceeds from the notes are expected to be used for the general corporate purposes of the Genting Group, which may include investments for the development of the Resorts World Las Vegas project.

Citigroup Global Markets Ltd, JPMorgan Securities plc, DBS Bank Ltd and SMBC Nikko Capital Markets Ltd are the joint lead managers for the offering.