MBS gets record S$12 billion loan; DBS, OCBC, UOB, Maybank coordinating facility

MARINA Bay Sands has obtained a S$12 billion multi-tranche loan to fund a planned expansion of its casino resort in Singapore, according to a source familiar with the matter, marking the largest such financing in the city state ever.

DBS Group Holdings, Malayan Banking, OCBC and United Overseas Bank were the coordinating banks on the credit facility, which attracted 22 other lenders when it was syndicated to the broader market, the source said, who asked not to be named discussing private matters.

A representative at Marina Bay Sands said the company does not have “any information to provide at this time” when asked about the deal, while its parent Las Vegas Sands did not immediately respond to requests for comment sent outside normal working hours.

The loan will be used for refinancing and to fund the expansion of the company’s integrated resort, the cost of which is expected to balloon to US$8 billion from the original estimate of about US$3.4 billion made in 2019.

Marina Bay Sands’ expansion plans come as Singapore’s tourism industry has staged a sharp rebound since the pandemic. International visitor arrivals in the city state last year increased by 21 per cent to 16.5 million, led by tourists from China, Indonesia and India.

The previous syndicated loan record in Singapore was a S$9.3 billion facility signed in 2012, which financed the acquisition of food and beverage maker Fraser & Neave by Thai billionaire Charoen Sirivadhanabhakdi’s TCC Assets.

MBS’ expansion comes amid robust performance by its Singapore operations.

For the fourth quarter ended Dec 31,2024, it posted a 7.2 per cent rise in net revenue to US$1.14 billion, amid ongoing renovation and refurbishment efforts, as it focuses on “high-value tourism” in Singapore. 

All the group’s segments recorded growth, with the casino business – which is the largest contributor to its revenue – rising 6.9 per cent to US$792 million in Q4 FY2024, from US$741 million in the year-ago period, parent company Las Vegas Sands (LVS) reported on Thursday (Jan 30). 

However, the integrated resort’s adjusted property earnings before interest, taxes, depreciation and amortisation (Ebitda) declined 1.3 per cent for the period, coming in at US$537 million, from US$544 million in the year-ago quarter. Had the group held as expected on its rolling play, MBS’ adjusted property Ebitda would have been approximately US$2 million lower.

In the casino industry, “hold” refers to the portion of wagers that is retained by the business. 

Citi Research analysts George Choi and Timothy Chau noted that the Ebitda figure was a positive surprise for the market, as it came in significantly above US$500 million, beating their forecasts.

Mass gaming revenue from slot machine and non-rolling table wins totalled a record US$746 million, up 27.7 per cent from the year-ago period. The figure beat the previous high by about 9 per cent, the Citi team said. BLOOMBERG