Singapore’s Marina Bay Sands (MBS) integrated resort is reportedly seeking to secure a loan facility of approximately SG$12 billion (US$9 billion), which would mark the largest financing deal in the city-state’s history. According to Bloomberg, this unprecedented move aims to support the planned expansion of its casino and resort complex while also refinancing an existing SG$4 billion ($2.98 billion) loan secured in 2019.
The loan, currently being arranged by DBS Group Holdings Ltd, Malayan Banking Bhd, Oversea-Chinese Banking Corp, and United Overseas Bank Ltd, would carry a seven-year term. Sources familiar with the matter, cited by Bloomberg, revealed that the facility will be syndicated to other financial institutions, though final terms remain subject to change as negotiations progress.
The proposed SG$12 billion loan comes amid plans by parent company Las Vegas Sands to invest US$8 billion into expanding Marina Bay Sands, a figure that has more than doubled from the original US$3.4 billion estimate made in 2019.
As previously reported by Inside Asian Gaming, the expansion project, dubbed “Marina Bay Sands IR2”, will feature a fourth hotel tower with 570 luxury suites, casino amenities, and its own SkyPark. The development will also include a 15,000-seat live entertainment arena and over 110,000 square feet of meeting, incentives, conferences, and exhibitions (MICE) space.
Construction is expected to begin by mid-2025, with the expanded facilities anticipated to open by early 2031, pending regulatory approvals. The rising costs are attributed to increases in land premiums, design and construction expenses, and pre-opening investments. The project budget reportedly includes US$4.7 billion for construction, US$2 billion in land premiums, and US$1.3 billion in pre-opening and finance costs.
If finalized, the loan would surpass Singapore’s current record, an SG$9.3 billion ($6.92 billion) facility arranged in 2012 to finance Thai billionaire Charoen Sirivadhanabhakdi’s acquisition of Fraser & Neave Ltd.
Las Vegas Sands projects substantial returns from the planned MBS expansion. In an investor presentation, LVS predicted an annual adjusted EBITDA of US$3.5 billion upon the project’s completion. Current trailing 12-month EBITDA stands at US$2.06 billion, with expectations to rise to US$2.5 billion following the completion of ongoing redevelopment works by mid-2025.
Original article: https://www.yogonet.com/international/noticias/2024/11/20/85948-marina-bay-sands-reportedly-eyeing-9-billion-financing-deal-to-fund-ambitious-development-plans
