Allen & Gledhill is acting for casino operator Genting Singapore on its planned second issue of perpetual securities worth about $397 million, which the company says it could use to expand into Japan and South Korea.
Genting Singapore, a unit of Malaysia’s investment holding and management group Genting Bhd , plans to sell S$500 million ($397 million) in perpetual subordinated capital securities, a hybrid of bonds and equities, to mostly retail investors, said Reuters. This would follow its last mobth;s S$1.8 billion issue of perpetual securities that was sold mainly to institutional and private banking investors.
Genting Singapore is hoping Japan and South Korea will follow the example of Singapore, which legalised casinos in 2005. Casinos are currently banned in Japan, and only one casino in the ROK is open to citizens.
Reuters added that Genting Singapore's latest issue will pay an annual coupon of 5.125 percent until October 2022 and 6.125 percent after that, with the company having an option to redeem the securities in 2017.
Issuing perpetual securities has been growing in popularity in Asia, Reuters said, due partly to favourable accounting practices that could translate into lower leverage ratios for companies.
DBS is the sole global coordinator for the offering. DBS and Oversea-Chinese Banking Corp (OCBC) are the joint lead managers and book runners of the deal.
The Allen & Gledhill team advising Genting Singapore comprises of partners Margaret Chin and Cara Chan, senior associate Diana Lim and associate Samuel Lee. Clifford Chance is acting as the legal adviser to the joint lead managers and bookrunners on Singapore law, and to the trustee on Singapore law, while Cains is acting as the legal adviser to the issuer on Isle of Man law. ALB
Ranajit Dam is Southeast Asia Editor at ALB. Follow him on Twitter: @RanajitDam_ALB.
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