MBS returns to loan market

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SINGAPORE casino operator Marina Bay Sands (MBS) has returned to the loan market for a financing of up to S$8 billion, in the biggest test so far of lenders' appetite for the gaming sector in the Lion City. Read more at The Business Times.

Sat, Jun 15, 2019 - 5:50 AM

MBS' first new financing for seven years is also the second-largest syndicated loan from Singapore, and bankers say the borrower will be reaching out to new lenders."Marina Bay Sands would have to woo both existing and new lenders to achieve success with this exercise," said a Singapore-based loans banker."The borrower has not raised such a size before and it is also unprecedented for the market in Singapore.

Both those A&E exercises required the support of existing lenders, whose support will again be crucial for the latest exercise. "We are keen to participate. There's no issue for us to join a casino deal, and take large take-and-hold positions in the sector," said a Singapore-based loans banker at a large Chinese bank."As much as the credit is attractive, there's a known restriction in terms of liquidity from the market towards the casino sector," said the second Singapore-based loans banker.

Singapore is second only to Macau in terms of Ebitda contribution for Las Vegas Sands, accounting for 29 per cent of the US parent's US$1.45 billion tally for the first quarter of the year. Its June 2012 loan closed despite emerging a few months after the eurozone crisis in 2011 that saw some heavyweight global lenders retreat to their home markets.

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