Logo of Phnom Penh Post newspaper Phnom Penh Post - NagaCorp issues bonds on HK bourse

NagaCorp issues bonds on HK bourse

Content image - Phnom Penh Post
NagaWorld in Phnom Penh.

NagaCorp issues bonds on HK bourse

Nagacorp, which operates the NagaWorld casino and hotel in Phnom Penh, has become the first Cambodian issuer of offshore bonds, raising $300 million to endorse further growth of its gaming business and to refurbish hotel rooms, according to the firm’s filing in the Hong Kong Stock Exchange on Tuesday.

The announcement revealed the Cambodian casino operator has entered into a purchase agreement with Credit Suisse (Hong Kong) Ltd and Morgan Stanley in connection with the firm’s issuing of notes in the aggregate amount of $300 million.

The notes, maturing on May 21, 2021, will allow interest at the rate of 9.375 percent per year. The estimated net proceeds from the issuance, after deduction of fees, commissions and expenses, will amount to approximately $290 million.

“The Group intends to use the net proceeds from the Notes to promote the gaming business growth, particularly in our VIP gaming segment, and [to] refurbish the hotel rooms in Naga1,” the filing read. It added the group may adjust the plans in response to changing market conditions and thus may reallocate the use of the proceeds.

NagaCorp, NagaWorld’s parent company, is listed on the Hong Kong bourse. According to the firm’s annual financial report, in 2017 the firm’s gross gaming revenue was $926 million while net profit amounted to $255.2 million. NagaCorp reported paying $8.12 million in income tax last year.

The bonds are expected to be rated B1 by Moody’s and B by S&P. Han Kyung Tae, managing director at Yuanta Securities (Cambodia), said on Wednesday that the bonds are expected to be rated one notch higher than the sovereign rating of Cambodia, where nearly all of NagaCorp’s businesses operate.

“It appears that Cambodian entities could get a higher credit rating if their securities are issued in foreign currencies, US dollars for example,” he said.

The Securities and Exchange Commission of Cambodia last August finalised regulations to establish a corporate bond, moving one step closer to introducing the capital market tool. However, no company has yet issued bonds inside the Kingdom.

MOST VIEWED

  • Time to avert disastrous Covid situation: officials

    The Covid-19 situation in Cambodia is heading towards further large-scale community transmission as the total number of confirmed cases is nearing 61,000 and the death toll passed 900 on July 10, senior health officials warned. Ministry of Health spokeswoman Or Vandine expressed concern that the country was going

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided