Banking syndicate loans US$2.5 billion to Las Vegas Sands for Macau projects

5 June 2006

Macau, China, 05 June – Las Vegas Sands Corp. has been granted US$2.5 billion in financing for development projects in Macau from a banking syndicate made up of six banks and led by Goldman Sachs Credit Partners.

According to reports on several US gaming sector websites, the loan is the largest ever granted to a non-government institution in China.

As well as the leader, the banking syndicate is made up of Lehman Bros, Citigroup Global, Canada’s Bank of Nova Scotia, Portugal’s Banco Nacional Ultramarino and Japan’s Sumitomo Mitsui Banking Corp.

The loan will be used to finance Sands’ expansion on the Macau peninsula and the construction of hotels, casinos, convention centers and shopping areas in the land fill area between the islands of Taipa and Coloane, known as COTAL.

US hotel chains such as Hilton, Starwood and Four Seasons, and Asia’s Shangri-La also plan to open hotels in Macau and COTAI.

In Las Vegas Sands’ case, the hotels will be built by the gaming company and run by the hotel chains.

The loan is divided in several blocks: US$1.2 billion over seven years, US$700 million over six years, US$100 million over five year and US$500 million over five years.

Las Vegas Sands, which recently won the concession to build the first entertainment complex with a casino in Singapore, is one of the gaming and gambling operators and in May 2004 opened the city’s first casino outside the Stanley Ho empire.

Macau currently has 21 casinos, 16 of which belong to Stanley Ho’s, Sociedade de Jogos de Macau. (macauhub)