(Adds comments from company, background)
By Charmian Kok
SINGAPORE, April 9 Casino operator Genting
Singapore PLC is planning a second issue of perpetual
securities worth about $397 million and could use the proceeds
to expand into Japan and South Korea, a senior executive said on
Genting Singapore, a unit of Malaysian 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.
This follows its S$1.8 billion issue of perpetual securities
last month that was sold mainly to institutional and private
"We are well positioned for opportunities such as those in
Japan and Korea," Chief Financial Officer Lee Shi Ruh said at a
Casinos are banned in Japan but a group of lawmakers is
pushing for a bill that could legalise them. In South Korea,
only one of its casinos is open to citizens and it is located in
a rural area far from major cities.
Lee said the potential liberalisation of Japan and South
Korea's gaming industries could follow a similar path to
Singapore, which legalised casinos in 2005. The two integrated
casino resorts in Singapore have helped boost its tourism
If Genting Singapore, which runs the Resorts World Singapore
casino, invests in Japan or South Korea, the projects would most
likely be in new "greenfield" developments rather than
acquisitions, Lee said.
The company is open to acquisitions in other markets, Lee
said, but she declined to name them.
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
Issuing perpetual securities has been growing in popularity
in Asia, 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 are the joint lead managers and
($1 = 1.2590 Singapore dollars)
(Editing by John O'Callaghan)