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As all baccarat players will know, there is a world of difference between playing online baccarat and playing in a casino, especially if the casino is one of the world’s luxury resorts. Of course, many people enjoy both and will play both at home online and travel to the world’s top casinos when they have the opportunity. One of these casino resorts is Marina Bay Sands in Singapore, where players can enjoy 7 Up Baccarat, Sands Super Baccarat, Tiger Baccarat, Tiger No Commission Baccarat, and Dragon Tiger Baccarat.
Now, in what could be exciting news for those who enjoy visiting the luxurious setting, there have been reports that Marina Bay Sands is working on securing a $9 billion loan to fund ambitious expansion plans.
If successful, it would be the largest corporate credit extension in Singapore in recent years. According to Bloomberg News, which cited anonymous sources, major financial institutions, including DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd., are collaborating on the financing and seeking participation from other firms.
The proposed loan is expected to have a seven-year term, though details such as interest rates have not been disclosed. Marina Bay Sands is controlled by Las Vegas Sands, a company with investment-grade credit ratings, though only by a narrow margin. Moody’s Investors Service has previously indicated that Las Vegas Sands may continue leveraging debt for significant global casino development projects and said that this could temporarily increase its debt levels.
Despite potential leveraging, Moody’s emphasized the company’s strong financial position and its ability to support shareholder returns, including dividends and stock repurchases. The proposed Singapore loan aligns with these predictions, as Moody’s estimated Sands’ cash flow-to-net debt ratio could rise to 33% over the next year and a half.
Growing Costs of Expansion in Singapore
The news of a potential $9 billion loan follows earlier speculation in 2023 that Marina Bay Sands was exploring a $7.5 billion financing deal for similar purposes. At the time, the company denied those reports, and no official comment has been made about the current rumors.
The rising cost of labor and global material shortages are likely driving up expenses for the Marina Bay Sands expansion. Initial estimates for the project, which includes additional guest rooms, expanded convention facilities, and a 15,000-seat entertainment arena, were set at $3.37 billion.
According to Bloomberg’s sources, a portion of the loan, if secured, would be used to refinance a $2.98 billion loan taken out in 2019, with the rest funding the expansion. This suggests that overall costs have not risen substantially since last year. If approved, it would surpass Singapore’s largest-ever syndicated loan, which was finalized in 2012 by Thai billionaire Charoen Sirivadhanabhakdi.
Strategic Investments in a Competitive Market
Expanding Marina Bay Sands may come with a high price, but it has the potential to generate significant long-term returns. As one of only two integrated resorts in Singapore, the property is among the world’s most profitable casino hotels, attracting high-spending tourists from across Asia.
The expansion is expected to be complete by 2031. However, it will face growing regional gaming competition. Projects such as MGM Osaka in Japan and potential casino developments in Thailand are set to reshape the market in the coming years.
Currently, Singapore ranks as the third-largest gaming market globally by gross gaming revenue (GGR). However, analysts believe Thailand could eventually overtake it if more casinos open in the country. Marina Bay Sands’ expansion is seen as a key strategy for maintaining its strong position in the region amid these changes.
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