Singapore Property Frontiers

GENTING International’s Resorts World at Sentosa (RWS) has completed the syndication of a $4 billion credit facility for its integrated resort (IR), at an interest rate of 175 basis points above the Singapore Swap Offer Rate. The tenure of the loan - one of the biggest undertaken in Singapore - extends to 2015.

On Jan 4, Singapore’s other IR operator, Las Vegas Sands, said it had entered into a credit agreement to provide finance of up to $5.4 billion, at an interest spread of 2.25 per cent above the Singapore Swap Offer Rate for maturities of one, two, three and six months.

RWS chief executive Tan Hee Teck yesterday thanked the lenders who ‘have shown incredible confidence in our management and our business model of a family entertainment destination’.

‘We are grateful to supporters who are rooting for us, and are operating at full throttle to deliver a top-class destination,’ he said.

Ten banks participated in the syndication, which was jointly underwritten and bookrun by five original mandated lead arrangers - DBS, OCBC, HSBC, RBS and Sumitomo Mitsui Banking Corporation.

The expanded mandated lead arrangers include Malayan Banking Bhd, Bank of Tokyo-Mitsubishi UFJ (S), Bangkok Bank Public Company (S), CIMB Bank Bhd (S), BNPP (S), Calyon, Commerzbank (S) and National Australia Bank (S). DZ Bank Deutsche Zentral-Genossenschaftsbank (S) and JPMorgan Chase Bank (S) joined as arrangers.

Mr Tan said the loan syndication was completed in about two months despite the difficult global credit environment.

DBS managing director (syndicated finance) Boey Yin Chong said: ‘It’s a fantastic result given the current volatility of the markets and demonstrates again, the banks’ long-term belief in and support of the project, in RWS and in Singapore itself.’

Source : Business Times - 25 Apr 2008