Cains acts on US$1 billion listing in Hong Kong

A US$ 1 billion debt notes issue has resulted in the first listing of an Isle of Man company on the Hong Kong Stock Exchange.

The issuer, GOHL Capital Limited, is an indirect subsidiary of Genting Berhad, the holding company of the Malaysia-based Genting Group. The issue of guaranteed unsecured fixed rate notes represents the Group’s landmark return to the US$ bonds market since 2004.

Cains Advocates advised GOHL on Isle of Man law.

Founded 51 years ago by visionary entrepreneur Tan Sri Lim Kok Thay, the Group employs more than 62,000 people and owns the Resort World brand with its gaming and leisure interests and is one of the largest international casino operators with 40 in the UK. Genting Singapore PLC (which is incorporated in the Isle of Man) is a member of the Genting Group and it has a market value of US$ 7.8 billion.

“Genting has been a long-term client of the firm and this was a very high profile deal involving global investment banks,” said   Mike Edwards, a director of Cains Advocates who led the law firm’s team advising GOHL. Citigroup Global Markets Ltd, J.P. Morgan Securities plc, DBS Bank Ltd and SMBC Nikko Capital Markets Limited were the joint lead managers. Major law firms, including Shearman & Sterling and Allen & Overy, also advised on the issue.

“It is particularly pleasing that the notes will be listed on the Hong Kong Stock Exchange which should further raise the profile of the Isle of Man in Asia,” said Mike Edwards, who heads Cains’ London office but previously worked in the firm’s Isle of Man and Singapore offices. He has also been involved in listings on the Singapore and New York Stock Exchanges which were also “firsts” for Isle of Man companies.

“This is the type of high-profile work that Cains prides itself on, it is often ground-breaking and challenging,” he added.

The net proceeds from the bonds issue will be used for a number of corporate purposes of the Group, which may include investments for the development of the Resorts World Las Vegas project.

Genting Berhad’s president and chief operating officer Tan Kong Han said: “We would like to thank all the very high quality investors for their participation and support in this offering.”

The Group, he added, is committed to grow in strength as a responsible global corporation.

While the Group’s leisure brands also include Crockfords and Maxims, it also has tie ups with Hard Rock Hotel and Twentieth Century Fox.   Genting has also been responsible for spearheading global investments in palm plantations, power generation, biotechnology and other industries.