Casino operator Genting Malaysia Bhd said one unit of the company would issue $1 billion in senior unsecured bonds of 3.882% due 2031. The bonds would be fully and unconditionally guaranteed by Genting Malaysia, it said in a filing on Tuesday.

The net proceeds "will be used by the company and/or its subsidiaries to refinance existing borrowings and use them for capital (including investments) and working capital requirements," Genting Malaysia said.

The offering is being held by Genting Malaysia Capital Labuan. The parent company has already been approved by Malaysia's central bank, which it says is "not subject to other regulatory or shareholder approval."

The note was offered and sold in the U.S. "only to eligible agency buyers," according to the filing. The note is expected to be listed and quoted through Singapore Exchange Securities, which is not cited for trading in Bursa Malaysia, but is expected to be listed.

The agreement accompanying this memo limits Genting Malaysia's capabilities: It may recover its own assets, merge with another company, transfer or sell all or substantially all assets, or enter into a sale and leaseback transaction. "These agreements are subject to a number of important exceptions and eligibility conditions," the casino company said.

In a note earlier this month, Fitch Ratings said it had issued an investment grade of "BBB" on the proposed notes of its Genting Malaysia subsidiary. The agency also said Genting Malaysia's long-term issuer default was "BBB" and was a "negative" outlook.

The rating agency also said Genting Malaysia should be able to "deliver in a year or two" thanks to a "gradual" recovery in demand following the COVID-19 pandemic.

BY: 경마사이트프로