A key subsidiary of Macau casino operator Macau Legend Development Ltd has disposed of HK$200 million (US$25 million) in bonds in order to boost its working capital.
The bonds, issued by Luso International Banking Limited in December 2018 and acquired by Macau Fisherman’s Wharf International Investment Limited (MFW) as an investment, offered an interest rate of 8% per annum and had generated HK$16 million (US$2 million) in interest income to the group for each of the financial years ended 31 December 2019, 2020 and 2021, Macau Legend said in a Tuesday filing.
While the disposal recorded a HK$8 million (US$1 million) loss on the HK$208 million (US$26 million) fair trade value of the bonds, the proceeds – to be used as “general working capital of the group” – appear to be desperately needed after MFW recently informed staff that they have been released as part of a streamlining of the business structure.
Macau Legend said Tuesday that it does not know the identity of those who acquired the bonds as they were disposed of through the open market.
“To the best knowledge, information and belief of the Directors and having made all reasonable enquiries, none of the connected persons of the Company nor the associates have purchased the Bonds which were disposed of by MFW under the Disposal,” it said.