Las Vegas Sands' Marina Bay Sands (MBS) is reportedly seeking a $9 billion loan to fund its Singapore expansion plans, potentially marking the largest corporate credit extension in Singapore's recent history.

Major financial institutions including DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd. are coordinating the loan arrangement. The proposed loan would carry a seven-year term, though specific interest rates remain undisclosed.

The financing would serve two purposes:

• Refinancing an existing $2.98 billion loan from 2019
• Funding the expansion project, which includes new guest rooms, convention space, and a 15,000-seat entertainment arena

Initially estimated at $3.37 billion, the expansion costs have likely increased due to global materials shortages and tight labor markets. The project is scheduled for completion by 2031.

Market Context:

• Singapore currently ranks as the world's third-largest gaming market by gross gaming revenue
• Marina Bay Sands is one of only two integrated resorts in Singapore
• The expansion aims to maintain competitiveness amid growing regional competition from upcoming venues in Japan (MGM Osaka) and Thailand

Financial Outlook:

• Las Vegas Sands maintains investment-grade credit ratings
• Moody's Investors Service projects the company's retained cash flow to net debt ratio could reach 33% over the next 12-18 months
• The company maintains sufficient financial resources to support its dividend and share repurchase programs while pursuing expansion

If successful, this loan would surpass the previous record for syndicated financing in Singapore, set in 2012 during Thai billionaire Charoen Sirivadhanabhakdi's acquisition of a Singaporean consumer staples company.

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