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

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • 'Pandora Papers' expose leaders' offshore millions

    More than a dozen heads of state and government, from Jordan to Azerbaijan, Kenya and the Czech Republic, have used offshore tax havens to hide assets worth hundreds of millions of dollars, according to a far-reaching new investigation by the International Consortium of Investigative Journalists (