Genting Bhd Raises US $216 Million via Notes to Fund GenM Buyout

Malaysian conglomerate Genting Berhad has issued MYR 900 million (roughly US $216.2 million) in one-year medium-term notes through its subsidiary Genting RMTN Bhd. The issuance is under the group’s MYR 10.0 billion MTN programme, with the net proceeds earmarked to partly finance the acquisition of the remaining ordinary shares in Genting Malaysia Berhad (GenM) that Genting Berhad does not already hold.

The notes carry an interest rate equal to one-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 1.80 percentage points per annum. The joint lead managers for the issuance are Affin Hwang Investment Bank Berhad and AmInvestment Bank Berhad. In October 2025, Genting Berhad announced a conditional voluntary takeover offer to acquire all remaining GenM shares at RM 2.35 per share, valuing the unit at approximately RM 6.74 billion (US $1.6 billion). 

The strategic rationale for the deal centres on strengthening GenM’s financial profile ahead of large-scale investments, including a proposed US $5.5 billion integrated resort in New York where GenM is bidding for one of three licenses. Genting Berhad already held about 49 % of GenM prior to the offer, and the move aims to consolidate ownership, delist GenM from Bursa Malaysia, and simplify capital allocation across the group.

However, analysts view the heavy debt funding as a potential credit concern for Genting Berhad. According to research from CreditSights, the leveraging arising from this acquisition could take Genting’s net debt to EBITDA multiple from around 2.9× to 3.8-3.9×, raising refinancing risk ahead of a US $1.5 billion bond maturing in January 2027. Meanwhile, the acquisition is seen as modestly positive for GenM, given stronger parent support and streamlined governance.