SJM Holdings Plans $141 Million Yuan-Denominated Bonds Issuance

SJM Holdings Ltd, a prominent name in the Macau casino industry, is exploring the possibility of launching offshore bonds denominated in yuan, expected to be unveiled in October, with a maturity period of three years. These bonds signify the company's re-entry into the public debt sphere after a significant hiatus of four years. According to Bloomberg, which sources this information from undisclosed insiders, SJM aims to gather a minimum of 1 billion yuan, equivalent to around $140.6 million. The primary use of the raised capital is slated for advancing development endeavors in Hengqin and supporting the organization’s overarching corporate objectives.

Investments in the Hengqin Project and Corporate Developments

SJM Holdings operates several flagship ventures, notably the Grand Lisboa, located on the Macau peninsula, and the Grand Lisboa Palace in the bustling Cotai district. Another casino run by the firm is situated within the Hotel Lisboa premises. Last year, SJM Holdings revealed plans to purchase commercial real estate on Hengqin island, a strategic piece of mainland territory adjacent to the Cotai district, with the aim to augment hotel accommodations.

Announced in July, the company proceeded with a hefty investment totaling 724 million yuan earmarked for the Hengqin initiative. The purchased locale will undergo transformation into a three-star hotel, provisioned with about 250 rooms, which is anticipated to reach completion approximately 24 months post the attainment of requisite permits for construction commencement.

Financial Outlook and Strategic Movements

In tandem with these developments, Bloomberg highlighted that the bond issuance plan has not been finalized and remains open to potential alterations based on investor impressions. Amidst these strategic moves, SJM Holdings finds itself under financial scrutiny. Moody’s Ratings reaffirmed the 'Ba3' corporate family rating but shifted the outlook from 'stable' to 'negative'. This change alludes to the noticeable strain on SJM's financial leverage, anticipated to persist over the ensuing 12 to 18 months due to lackluster results in the first half of 2025.

Additionally, SJM Resorts Ltd, a subsidiary of SJM Holdings, has reported signing a promissory agreement with its parent group, Sociedade de Turismo e Diversões de Macau SA (STDM), to acquire part of Hotel Lisboa at a transaction value of HKD529 million, equivalent to about $68.1 million. These strategic financial maneuvers underscore SJM Holdings' quest for consolidation and progression amidst economic fluctuations.

Source: SJM Holdings eyes US$141mln in yuan-denominated bonds: report, GGRAsia, September 24, 2025.

Posted by Wizard
Sep 25 2025