SJM issues HKD 1.25b and MOP300m in senior notes

SJM Holdings Limited (SJM) recently announced that its wholly-owned subsidiary Champion Moments Limited had successfully issued senior notes in the Macau bond market in the amounts of HKD1,250,000,000 and MOP300,000,000, guaranteed by SJM.
The senior notes, which bear interest at 3.90% and have a final maturity set for 2026, were sold to professional investors, and are being listed on Chongwa (Macao) Financial Asset Exchange Co., Ltd. (the MOX).
According to a statement issued by the gaming operator, the dual issue marks the first time that a major tourism business in Macau has issued debt instruments for listing on the MOX. Proceeds of the senior notes are being used to refund existing debt and for general corporate purposes of the SJM Group.
Benjamin Toh, chief financial officer of SJM, said, “We are very pleased with the outcome of this financing, which was well received and enabled us to tap the market of local professional investors while raising funds at attractive terms.”
Daisy Ho, chairman and executive director of SJM, commented, “The success of our pioneering issuance demonstrates that non-financial companies with operations in Macau can raise notes and bonds in the Macau market.”
“We are very appreciative of the commitment that the Macau authorities have made to this new financial market, and we are pleased to support its role in the development of Macau’s modern financial system and the moderate diversification of the economy,” she added.
SJM registered a negative figure of HKD2.09 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year of 2020, down 149.6% year-on-year due to Covid-19. These figures were announced by the casino operator in its latest financial report.
The net loss amounted to HKD3.03 billion for SJM throughout 2020, down 194.3% from its profit in the previous year.

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