Malaysian Tycoon Chen Lip Keong’s NagaCorp To Raise $200 Million As Covid-19 Hits Earnings

On Tuesday, likely to raise $200 million by issuing additional debt notes to reinforce its balance sheet because the Covid-19 pandemic in Cambodia weighs earnings during its casino hotel in the country’s capital.

NagaWorld, NagaCorp’s integrated hotel in Phnom Penh, has To curb the additional spread of this virus, Cambodia’s government last week banned gatherings of more than 15 individuals and ordered the closure of entertainment places such as nightclubs and casinos in and around the capital city.

“While our company operations remain frozen, We’re not Generating any earnings,” NagaCorp stated in a filing to the Hong Kong Stock Exchange. In 2020, The firm’s net profit climbed to $102 million from $521 million the preceding year as gross gambling revenue halved after the temporary closing of NagaWorld for more than three months because of Covid-19.

Together with the worsening pandemic scenario in Cambodia this year, NagaCorp decided to issue further notes in addition to the initial $350 million notes issued in July 2020. In addition, it stated that it had been retrenching a number of its workers, cutting the cover of staying personnel and scaling back the resort’s food and beverage operations to enhance cost efficiencies.

Regardless of the cost savings along with the Organization’s current cash and Deposits of $451.7 million on April 30, 2021, and taking into consideration the $81.7 million gains expected to be paid the following month, NagaCorp stated, “our liquidity might encourage over just six months of managing expenditure and interest costs.”

NagaCorp was set by Chen, 73, in 1995 after winning a Casino license at the Phnom Penh that runs through 2065, with a bonded Malaysia’s ninth-richest person, according to the Nation’s rich list Released last week.

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Adam Collins
Adam writes about technology, business and economics. With master's degree in Economics, he's presented six papers in international conferences. As a solivagant in the constant state of fernweh, curiosity is the main weapon in his arsenal.

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