Genting Bhd Issues RM3B MTNs to Manage Post-Bid Debt

Malaysian gaming giant Genting Bhd has taken a strategic financial step following its recent Genting Malaysia takeover bid, issuing 3.0 billion ringgit (around US$739.2 million) in medium-term notes through its subsidiary Genting Vista Bhd. The issuance is part of a 5.0 billion ringgit unrated medium-term note programme and is earmarked to redeem earlier notes issued by another unit, Genting RMTN Bhd. These previous notes had been used to partly fund the acquisition of Genting Malaysia shares during the recent bid, which ultimately failed to reach the 75 percent threshold required for delisting.

The offer, priced at RM2.35 per share, closed on December 1 with less than 73.5 percent of shares acquired. As a result, Genting Malaysia remains publicly traded, while the parent reorganizes its debt obligations.

Details of the Issuance
Genting Vista Bhd’s Series 1 notes have tenors ranging from one to five years, with interest tied to the three-month Kuala Lumpur Interbank Offered Rate plus 1.80 percent. Lead managers for the issuance were Affin Hwang Investment Bank Bhd and AmInvestment Bank Bhd.

The redeemed notes from Genting RMTN Bhd were part of a 10 billion ringgit programme guaranteed by the parent company, initially used to support the takeover bid. By replacing them with new MTNs, Genting maintains balance sheet flexibility without resorting to bank loans or equity issuance, keeping operations stable.

Strategic Implications
This refinancing move allows Genting Bhd to manage obligations created by the takeover attempt while preserving liquidity and capital structure. With Genting Malaysia still listed, minority shareholders remain and ongoing regulatory obligations continue to apply.

While the MTN swap resolves short-term debt pressures, it leaves questions about future privatization efforts or corporate strategy open. For now, the maneuver gives Genting Bhd a flexible financial position to navigate the post-bid environment.