Sands Procures $9 Billion Loan for Singapore Casino Hotel Expansion

Sands Procures $9 Billion Loan for Singapore Casino Hotel Expansion

Las Vegas Sands (NYSE: LVS) has allegedly secured a $9 billion loan for its expansion efforts at Marina Bay Sands (MBS) in Singapore — a deal that marks one of the most significant corporate credit extensions in the city's history. 

Last November, there were rumors that a group of banks representing Sands was looking for buyers for the loan and trying to involve additional lenders in the multitranche financing.

"DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. were the coordinating banks on the credit facility, which attracted 22 other lenders when it was syndicated to the broader market,” reports Chien Mi Wong for Bloomberg, citing unidentified sources with knowledge of the matter.

As of late Monday, neither the Las Vegas-based parent nor Marina Bay Sands had verified the agreement. The $9 billion exceeds the $8 billion that the operator is expected to invest in upgrading the integrated resort in Singapore. This amount exceeds more than twice the $3.4 billion that Las Vegas Sands informed investors it planned to invest in Singapore when the initiative was revealed in 2019. 

Expenditure at Sands Singapore May Yield Returns 

Although Sands' anticipated spending in Singapore exceeds earlier predictions, the undertaking, which features the construction of a fourth hotel tower, may yield advantages in the long run. 

MBS is among the most valuable gaming brands globally and stands as one of only two casino hotels in Singapore — a duopoly that is safeguarded by government protection for many years ahead. Moreover, the venue’s results for the fourth quarter were remarkable, reinforcing its position as one of the most lucrative casinos globally. 

“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 on a January conference call with analysts. “The growing appeal of Singapore as a destination is enhanced by the robust entertainment and lifestyle event calendar. As you complete the balance of our investment programs in the first half 2025, there will be considerable runway for growth.”

CFO and President Patrick Dumont referred to Singapore as an “exceptionally robust and appealing” market that lures a more affluent caliber of visitor. 

MBS Growth Schedule 

Initially, Sand intended to finalize the Singapore enhancements by July 2029, but the schedule has shifted to June 2030, with an opening set for January 2031. 

Enhancements feature new guest accommodations, convention and meeting areas, expanded retail space, a 15,000-seat entertainment venue, and increased gaming space. As a result of the casino expansion, the operator needed to revise its agreement with the Singapore Tourism Board, which added to the prolonged timeline. 

Currently, MBS is Sands’ only casino hotel situated outside of Macau, although the operator has shown interest in Thailand and is also competing for a gaming permit in New York.