SJM Holdings reportedly plans public debt offering to fund Zhuhai project

SJM Holdings is reportedly planning its first public debt issue in four years.

Macau.- SJM Holdings is reportedly planning to sell its first public debt in four years. Bloomberg has reported that, according to unnamed sources, the casino operator aims to issue, next month, bonds in offshore yuan to raise at least CNY1bn (US$141m).

It reportedly plans to use the funds raised for development projects in Hengqin and for general corporate purposes, subject to investor demand. In July, the casino operator bought a commercial property next to the Hengqin Portfor CNY724m. The plan is to convert it into a three-star hotel and lifestyle complex featuring residential, retail and office facilities.

Dim sum bonds have become popular, especially among tech companies, because they often cost less than dollar bonds due to lower Chinese interest rates. So far this year, companies have issued US$50.4bn in such bonds, according to Bloomberg.

Fitch downgrades SJM Holding

Credit ratings agency Fitch recently revised the outlook for SJM Holdings’ Long-Term Foreign-Currency Issuer Default Rating (IDR) from stable to negative due to uncertainty about how the casino operator will reduce its debt. It affirmed a ‘BB-‘ IDR and senior unsecured rating and a ‘BB-‘ rating for the outstanding notes of subsidiary, Champion Path Holdings Limited.

According to SJM’s latest financial report, the Grand Lisboa Palace (GLP) resort is not increasing its earnings and cash flow as quickly as expected, Fitch says. It said that if operations weaken further, it may lead to a lower rating.

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See also: Fitch downgrades SJM Holding

SJM Holdings is reportedly planning its first public debt issue in four years. Macau.- SJM Holdings is reportedly planning to sell its first public debt in four years. Bloomberg has…