The offering will help pay for the development of its Singapore casino

June 29, 2007
Reuters

SINGAPORE, June 28 (Reuters) - Gambling group Genting International said it planned to raise as much as S$2.3 billion ($1.5 billion) in a rights offering to help pay for the development of its Singapore casino.

Singapore-listed Genting International and cruise operator Star Cruises Ltd., both part of the Malaysian gambling and leisure group Genting Bhd, in December won a bid to build and run Singapore's second casino-resort.

The casino, which will include a Universal Studios theme park and other attractions, is expected to cost $3.4 billion and is part of Singapore's plan to attract more tourists.

Genting International said it planned to issue rights to three shares for every five existing shares.

The company plans to use the proceeds, expected to be between S$2.0 billion and S$2.3 billion, to fund the development of the casino-resort and repay part of its debt, including a bridging loan of 297 million pounds.

"The estimated full cost of developing the integrated resort, which amounts to approximately S$5.2 billion, will have to be funded by the group," Genting International said in a statement to the Singapore Exchange.

"The composition of funding the development of the integrated resort has not been finalised, but the company expects the financing to comprise a combination of equity, debt and non-recourse project financing," it added.

Genting International shares rose 1.6 percent to close at S$0.97 on Thursday. DBS Group Holdings has been appointed manager of the issue.

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