Black Spade Capital Limited, a company founded by Melco Resorts Chairman and CEO Lawrence Ho in 2017 and that manages his personal wealth, announced on Tuesday the first issuance of bonds denominated in Macau’s local currency, patacas.
The bonds are valued at MOP$2 billion with a maturity of two years and a coupon rate of 3.1%.
“If you have MOP, what you do is deposit it in the bank … but we provide another solution to give investors higher yield,” said Dennis Tam, President and CEO of Black Spade Capital.
Tam explained that the coupon rate of the bonds is particularly attractive for local investors when compared to regular deposit rates. Economists and investors have frequently indicated that Macau locals have very limited investment options due to the nature of the city’s economic and geostrategic situation.
Tam said he now expects “there will be more followers using MOP” as currency to issue other financial instruments after witnessing Black Spade Capital’s venture.
At a launch press conference held at Melco’s Morpheus hotel tower at City of Dreams, Black Spade Capital stated that the issuance of its bonds would promote the integration of Macau in the Greater Bay Area and enhance the liquidity of the currency.
The company also highlighted that proceeds will be used for non-gaming investments within the Greater Bay Area including in Macau, Hong Kong and China’s Guangdong province. The bonds have local Tai Fung Bank as sole global coordinator and chief structuring advisor.
Tuesday’s launch ceremony, which Ho missed due to illness, was headed by Tam on behalf of Black Spade, together with Zhou Peng, Executive Director & President of Tai Fung Bank Limited.
