Nagacorp set for Cambodia debut
Bonds Casino operator targets US investors for frontier market’s first offshore issueBY DANIEL STANTONNAGACORP, which owns and
operates the only integrated
casino and hotel resort in
Phnom Penh, is planning to
become the first Cambodian
issuer to sell offshore bonds.
The company last week hired
Credit Suisse and Morgan Stanley
as joint global coordinators and
bookrunners for a potential US
dollar debut in the 144A/Reg S
market.
Hong Kong-listed Nagacorp
has been meeting investors in
Hong Kong, Singapore, London,
Boston and New York from May
2, and has secured expected
ratings for the bonds of B1/B
(Moody’s/S&P).Proceeds will be used to grow
its VIP gaming business and
refurbish hotel rooms.
The lack of pricing referencesin Cambodia, which does
not have a domestic bond
market to speak of, means thatinvestors are expected to look
at like-rated credits in South-
East Asia, as well as Macau
casino bonds.“The most relevant
comparable credits are in the
Macau gaming complex, butwe expect investors to add on a
premium given the Cambodian
jurisdiction,” said a market
source.
Nagacorp has decided to
target the US investor base,
given that is very familiar with
the gaming sector and has
driven demand for many of the
Macau offerings.
Among Macau gaming
credits, Wynn Macau’s 2024
and 2027 bonds, rated B1/BB–
(Moody’s/S&P), were trading
at 5.3% and 5.8%, respectively,
on Wednesday, according to
Thomson Reuters data. Studio
City’s 2019 and 2021 notes,
rated B1/BB–, were quoted at
4.7% and 5.4%, while Melco
Resorts’ 2025s, rated Ba3/BB,News
“The most relevant comparable credits are in the
Macau gaming complex, but we expect investors
to add on a premium given the Cambodian
jurisdiction.”