South Korean integrated resort operator Shin Hwa World announced on Monday that it plans to issue bonds valued at HK$200 million ($25.7 million) to raise long-term funds for its business development.
The company’s Directors stated that the proposed bond issue presents an opportunity to secure long-term financing while broadening its sources of capital. They believe the bond terms are fair and reasonable, given the current market conditions, and that the issuance is in the best interests of both the company and its shareholders.
The bonds are expected to carry an annual interest rate ranging from 5 percent to 8 percent. The maturity period will be up to 96 months from the date of issuance, with the option for a further 24-month extension at the sole discretion of the company.
However, Shin Hwa World clarified that the bonds will not be listed on the Hong Kong Stock Exchange or any other stock exchange, meaning they will be issued privately and not publicly traded.
The funds raised from the bond issuance will support Shin Hwa World’s ongoing business development, particularly in the integrated resort sector. The company plans to use the capital to expand its resort offerings and explore new growth opportunities.
By issuing bonds, Shin Hwa World aims to enhance its financial flexibility and ensure it has the necessary resources for long-term development.
In the first half of 2024, Shin Hwa World managed to reduce its loss by nearly 32 percent, largely due to an increase in gaming revenue from Jeju Shinhwa World. The company reported a loss of HK$231.54 million ($29.8 million) for the period, despite a 25.5 percent rise in consolidated revenue, which reached HK$418.1 million ($53.8 million).
Currently, the group is looking forward to further developing a residential area within the Jeju Shinhwa World land (zone R) and exploring other opportunities to better utilize the land at Jeju Shinhwa World.
