News Highlights - Genting, Hong Leong Bank, KFC Holdings (M)

Genting Bhd (RM10.84/share)

Genting’s S’pore unit to issue securities worth RM1.2bil in expansion plan A senior executive of casino operator, Genting Singapore Plc, said it is planning a second issue of perpetual securities worth about US$397.0mil (RM1.2bil) and could use the proceeds to expand into Japan and South Korea. Genting Singapore, a unit of Malaysian group Genting Bhd, plans to sell S$500.0mil (US$397.0mil) in perpetual subordinated capital securities, a hybrid of bonds and equities, to mostly retail investors.  Reuters reported that this follows its S$1.8bil issue of perpetual securities last month that was sold mainly to institutional and private banking investors. Chief financial officer Lee Shi Ruh said the company is well positioned for such opportunities. She added that the potential liberalisation of Japan and South Korea’s gaming industries could follow a similar path to Singapore, which legalised casinos in 2005. Genting Singapore’s latest issue will pay an annual coupon of 5.125% until October 2022 and 6.125%after that, with the company having an option to redeem the securities in 2017. – StarBiz

Hong Leong Bank Bhd (RM12.40/share)

Hong Leong gets SC nod for US$1.5b notes Hong Leong Bank Bhd has received the approval from the Securities Commission (SC) on the proposed Euro Medium-Term Note Programme of up to US$1.5 billion (RM4.61 billion). In a statement, Hong Leong Bank said the net proceeds from the programme will be used for general working capital and other corporate purposes. Citigroup Global Markets Ltd, HL Bank, Mitsubishi UFJ Securities International plc and The Royal Bank of Scotland plc are the arranges and dealers for the programme. – Business Times

KFC Holdings (M) Bhd (RM3.81/share)

To spend RM12 million this year to promote branding KFC Holdings (Malaysia) Bhd’s Managing Director, Haji Jamaludin Md Ali, said it will spend about RM12.0mil in advertising, marketing and promotions for its “So Good” branding tagline, over three phases this year. He said in general, the branding campaign will encompass several phases, but this year, there will be three. At the launch of the first phase sub-theme of the tagline “So Good”, which is, “That’s Why It Tastes So Good”, he said they are spending RM4.0mil on the first phase and plan about the same amount for the second and third. The sub-theme is expected to drive sales up by around 10.0% to 15.0% in the second quarter. – StarBiz

Source: AmeSecurties