Shinhwa World (582), which operates a casino resort in Jeju, South Korea, has announced plans to issue bonds with a principal amount of up to HKD 200 million to investors. This provides the company with an opportunity to raise long-term funds for business development and to diversify its funding sources.
According to the main terms of the bond offering notice, the bonds will be issued at 100% of their principal amount, with a maturity of up to eight years. The company may, at its discretion, extend the maturity by two years. The expected annual interest rate will range between 5% and 8%.
In July of this year, Shinhwa World completed a rights issue, raising net proceeds of HKD 258.6 million. In an earlier interview with Allin, the company stated that the funds raised are intended for upgrading existing facilities and expanding new entertainment projects, with the aim of transforming the resort using a “carnival” approach.
In August, Shinhwa World announced its interim results for the period ending in June. The group recorded revenue of HKD 525 million, representing a year-on-year increase of 25.5%. The loss narrowed to HKD 232 million, down from HKD 339 million in the same period last year.
