Genting Singapore may fund new overseas venture

DBS believes the company will issue perpetual bonds and use it to invest abroad.

Genting Singapore has not indicated how it will spend the proceeds from SGD perpetual bonds issuance, which is expected after Moody's and Fitch both awarded sterling ratings.

But the brokerage firm said the magnitude of the issue alone makes financing likelier to be funneled into international investments.

Here's more from DBS:

With net cash and strong operating cashflows, GENS declared maiden DPS of 1cent. GENS will also be issuing SGD perpetual bonds soon, after obtaining Baa1 and A- ratings from Moody’s and Fitch respectively (highest among gaming companies). No further details provided, but the issue will likely be sizeable as GENS is looking at few investments outside Singapore (potential US$0.5-3.4b equity contribution or capex of US$1.5-10b, assuming 2/3 debt financing). Minimal impact on net gearing (may even reduce) as perpetual bonds are classified as equity.