CASINO

Genting BHD itching to get a hold of Japan casino license

TAGs: Genting, Genting Singapore, malaysia

Malaysia-listed conglomerate Genting BHD is building its financial war chest in anticipation of a bidding war for Japan’s casino licenses.

Genting BHD itching to get a hold of Japan casino licenseIn its 2017 annual report, Genting BHD expressed optimism that the long-awaited Japan Integrated Resorts (IR) Implementation Bill will be approved in this year’s Diet session. This reason alone has prompted Genting to “diligently” prepare for the much-coveted gaming licenses in Japan, according to the company.

“Many global gaming operators have pronounced their very keen interest to bid, and Genting Singapore will be facing fierce competition for the limited number of licenses,” Genting said in a filing before the Bursa Malaysia on Monday.

Genting’s annual report showed that its Genting Singapore subsidiary raised a total principal amount of JPY20 billion (US$177 million) in October 2017 via publicly-offered Samurai bonds.

International credit debt watchers Moody’s Investors Service and Fitch Ratings Inc. had earlier rated Genting Singapore’s Samurai Bonds at A3/A-.

Aside from dangling coupons with a five-year tenor, Genting Singapore earlier said that it also issued bonds on a three-year fixed tranche at yen offer-side swaps, plus 45 basis points to 55 basis points; and plus 75 basis points to 85 basis points on the seventh year.

“The funds are earmarked to support its corporate activities in Japan including preparatory works in anticipation of the passage of the Japan Integrated Resort Execution [Implementation] Bill and bidding for gaming licenses in Japan,” Genting Bhd said.

Meanwhile, Genting also shared its plans for its other businesses across the globe.

In the UK, Genting said that it will come up with a strategy to boost its casino market share. Genting believes that growing its market share will help strengthen its position in the non-premium player segment.

The company will also continue to implement its strategy of reducing short-term volatility in the premium player segment.

In the U.S., Genting said that it remains focused on the implementation of the $400 million expansion of Resorts World Casino New York City. The expansion comes at a time when the Resorts World Casino has maintained its position as a market leader, according to Genting.

In Malaysia, Genting said that it’s committed on implementing its Genting Integrated Tourism Plan (GITP), which includes the opening of Skytropolis indoor theme park and the Twentieth Century Fox World Theme Park.

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