Marina Bay Sands (MBS) is reportedly in discussions with banks over a loan facility of around SG$12 billion (US$9 billion) that if realized would become the largest such financing in Singapore’s history. The previous record of SG$9.3 billion (US$6.9 billion) was signed in 2012 to finance Thai billionaire Charoen Sirivadhanabhakdi’s acquisition of consumer group Fraser & Neave Ltd, according to a report by Bloomberg.
Just weeks after parent firm Las Vegas Sands (LVS) revealed it would spend US$8 billion on the expansion of Marina Bay Sands – including development of a fourth hotel tower at its iconic Singapore resort – Bloomberg says the record seven-year loan facility is currently being arranged by DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd with the purpose of providing capital for the expansion and for refinancing of existing debts.
Bloomberg cited people with knowledge in the matter but noted comment from an MBS representative who said the company does not have “any further information to provide at this time”.
However, in an investor presentation released by LVS overnight, the company outlined its forecast of achieving annual Adjusted EBITDA of US$3.5 billion once the MBS expansion is complete. Trailing 12-month EBITDA already sits at US$2.06 billion as of 3Q24, the presentation states, and is expected to reach US$2.5 billion prior to expansion and once an ongoing redevelopment program of its existing facilities is complete in mid-2025.
As previously reported by Inside Asian Gaming, the MBS expansion project – dubbed “Marina Bay Sands IR2” – will boast its own casino amenities, including a main casino area in the podium plus “sky gaming” in the new tower, as well as 570 luxury suites, a 15,000-seat arena, 110,000 square feet of MICE space, its own SkyPark and high-end F&B.
The new costing, coming in at two-and-a-half times more than the original US$3.3 billion investment announced in 2019, comprises US$4.7 million in design and construction costs, US$2 billion in land premiums and US$1.3 billion in pre-opening and finance costs.
Construction is slated to begin by June next year with an estimated opening date of 1 January 2031.
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