TOTO outlet
KUALA LUMPUR: Berjaya Sports Toto Bhd
’s (BToto) principal subsidiary Sports Toto Malaysia Sdn Bhd is setting up a medium-term notes (MTN) programme of up to RM800mil in nominal value.
In a filing with Bursa Malaysia, the toto betting operator and online lottery equipment lessor said Sports Toto Malaysia on Thursday lodged the proposal with the Securities Commission and would make the first issuance within 60 business days.
The MTN programme, with a tenure of up to 15 years, is backed by an irrevocable and unconditional guarantee from BToto. Malaysian Rating Corp Bhd has given the programme a preliminary rating of AA-/Stable.
BToto said proceeds raised from the issuance would be used to refinance existing borrowings of Sports Toto Malaysia and/or BToto, and to finance general corporate purposes including, but not limited to, working capital requirements, future investments, and other general purposes in the ordinary course of business.
CIMB Investment Bank Bhd and Maybank Investment Bank Bhd have been appointed as the joint principal advisers, joint lead arrangers and joint lead managers for the MTN programme.
BToto recorded a 16.5% lower pre-tax profit of RM445.7mil for the financial year ended April 30, 2016, mainly due to lower profits from Sports Toto Malaysia as well as the refund of RM18.0mil stamp duty.
For the first nine months of this financial year, BToto reported an unaudited pre-tax profit of RM278.04mil, down 9.3% compared to the previous year’s corresponding period.
The lower performance was mainly due to the results of Sports Toto Malaysia and Philippine Gaming Management Corp (its wholly-owned subsidiary that supplies computerised online lottery system and software support to Philippine Charity Sweepstakes Office) coupled with higher investment-related expenses incurred.
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