Sociedade de Jogos de Macau seeks finance to complete new hotel and casino

30 October 2007

Macau, China, 30 Oct – The Seng Heng Bank, the Industrial and Commercial Bank of China and BNP Paribas are heading up a consortium that Monday signed a deal with Macau gaming and gambling company Sociedade de Jogos de Macau (SJM) for a HK$5 billion loan.

The loan involves ten banks, has a maturity of five years and its aim is to garner funds for construction of the Grand Lisboa hotel/casino, the new headquarters of SJM.

SJM said that China’s four largest state banks – Bank of China, Industrial and Commercial Bank of China, Bank of Agriculture and Construction Bank – are involved in providing the loan.

The loan’s interest rate is indexed to the Hong Kong Interbank Offer rate (HIBOR) with a spread of 1.4 percentage points and is considered to be the lowest ever achieved in the market by the company.

The Seng Heng Bank is still 70 percent owned by Sociedade de Turismo de Diversoes de Macau, which holds 80 percent of the shares of SJM, although the sale of that stake to the Industrial and Commercial Bank of China has now been agreed for 3.98 billion patacas.

Of the six de facto operators in the Macau gaming sector only SJM is not listed on the stock exchange, which blocks the company’s access to financing outside of the banking system. (macauhub)