Marina Bay Sands Secures $9bn Loan for Casino Hotel Expansion

Summary:

• Las Vegas Sands secured a $9 billion loan for Marina Bay Sands’ expansion in Singapore.
• The deal was possible via a consortium of 26 banks.
• The expansion includes a fourth hotel tower, new amenities, and an enlarged gaming floor.

NYSE-listed global leader in developing and operating international, world-class integrated resorts, Las Vegas Sands, has reportedly secured a $9 billion loan to fund expansion efforts at Marina Bay Sands (MBS) in Singapore.

The deal signals one of the most significant corporate credit agreements in the history of the city-state. In November, speculation first emerged that a banking consortium was seeking additional lenders to participate in the multi-tranche loan.

DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd. spearheaded the financing, eventually drawing in 22 additional lenders as the deal moved through syndication.

MBS’s Results, Reflecting “the Growth of High-Value Tourism”

The results of Marina Bay Sands reflect the positive impact on our capital investment program and the growth of high-value tourism

said Sands CEO Robert Goldstein during a January earnings call.

As of late Monday, neither Marina Bay Sands nor its parent company, Las Vegas Sands, had officially confirmed the financing agreement.

The $9 billion exceeds the operator’s estimated $8 billion budget for enhancing the Singapore property, which is more than double the $3.4 billion initially projected when the plans were unveiled in 2019.

Despite exceeding early cost estimates, the expansion project, which includes a fourth hotel tower, could provide substantial long-term gains.

Marina Bay Sands remains one of the most valuable gaming brands worldwide and, along with Resorts World Sentosa, enjoys the benefits of Singapore’s tightly controlled casino duopoly, safeguarded by government protections for the foreseeable future.

Singapore, an “Incredibly Strong and Desirable” Market

MBS delivered strong fourth-quarter financial results, reinforcing its reputation as one of the world’s most profitable casinos.

Chief financial officer and president Patrick Dumont emphasized Singapore’s appeal, calling it an “incredibly strong and desirable” market that draws high-quality tourism.

Originally set for completion by July 2029, the project’s timeline has shifted, with final enhancements now expected by June 2030 and an opening scheduled for January 2031.

Key additions include expanded guest accommodations, increased convention and meeting space, additional retail offerings, a 15,000-seat entertainment arena, and an enlarged gaming floor.

Adjustments to Sands’ agreement with the Singapore Tourism Board contributed to the revised schedule.

Currently, Marina Bay Sands stands as Sands’ only casino resort outside Macau. However, the company is actively pursuing expansion opportunities in Thailand and has submitted a bid for a New York gaming license.