Published: September 14, 2006
 
 
SINGAPORE Las Vegas Sands, one of the world's biggest casino operators, is paying less interest on loans to finance the first gambling resort in Singapore than it does at home in Nevada.
 
Citigroup, Goldman Sachs Group, Merrill Lynch and Lehman Brothers Holdings are leading a group lending .4 billion to Las Vegas Sands at a rate 136 basis points higher than the London interbank offered rate, a borrowing benchmark.
 
That is the smallest premium ever for the company, which paid 40 basis points more to build the Venetian hotel in Las Vegas and 140 basis points more for a loan in Macao.
 
"We're in a fortunate position where banks are figuring out a way to lend us money," William Weidner, president of Las Vegas Sands, said. "Singapore is a very well respected economy. The risk profile is low."
 
Creditors are willing to charge less to fund the Marina Bay Sands resort because the government of Prime Minister Lee Hsien Loong has pledged to license only one other casino in the next 10 years. Marina Bay is likely to produce billion in revenue in 2009, its first year, Weidner said. That is more than Las Vegas Sands collects worldwide.
 
Singapore, seeking more money from tourists, is ending a four-decade ban on casinos. The government plans to triple annual tourism revenue to billion and to double the number of visitors to 17 million by 2015.
 
"Banks are likely to lend at lower pricing to a Singapore government- sponsored project," said Stephen Ching, head of loan syndication at Citic Ka Wah in Hong Kong, which lent to Las Vegas Sands in Macao. Singapore is safer for banks because of the "limited competition in the country," he said.
 
The growth of the casino industry in Asia is outpacing the rest of the world. Annual gambling revenue from the region will double to billion by 2010, up from .9 billion last year, according to a PricewaterhouseCoopers report. Casinos worldwide will take in 5 billion in 2010, 52 percent more than last year, the report said.
 
Macao will generate billion in casino revenue this year, more than the billion from Las Vegas's main gambling strip in 2005, according to data from Morgan Stanley and the Nevada Gaming Control Board. Sands Macao and Wynn Resorts, controlled by the billionaire Stephen Wynn, are among four casino resorts that opened in Macao in the past year, bringing the total to 21.
 
The competition may be eroding profits. Stanley Ho, the founder of Macao's gambling industry, said one third of the VIP betting halls in 16 casinos he controls face bankruptcy.
 
Las Vegas Sands' financing is more expensive than loans used to fund other development projects in Singapore. Banks are charging the company almost three times the 50 basis-point interest margin on a loan of 1.6 billion Singapore dollars, or 9 million, made to the Singapore developer CapitaLand and Sun Hung Kai Properties of Hong Kong. The money is being used to build a shopping mall and an apartment complex.
 
Singapore may struggle to attract tourists for gambling as countries in the region including Japan and Thailand also consider lifting bans on casinos.
 
For lenders, more casinos mean more opportunities. Banks are likely to earn 0 million from loans funding billion worth of casino projects in Asia in the next decade, according to Bank of America estimates.
 
Citigroup, Goldman and Lehman are among the leading banks arranging the loans that Las Vegas Sands took out in Macao and Singapore.
 
The downtown Marina Bay resort, which is next to the island's business district, will feature three hotel towers linked by a sky garden, restaurants run by the celebrity chefs Charlie Trotter and Thomas Keller, and an art-and-science center shaped like a lotus flower. A 110,000-square-meter, or 1.2 million-square-foot, convention center, the biggest single venue for meetings in Asia, will be next to the casino.
 
Las Vegas Sands has already started promoting the conference space and will recoup its .4 billion investment within five years, Weidner said.
 
"Singapore is going to be great for Adelson and the opportunity is going to be fine for him," Wynn of Wynn Resorts said. "The timing was poor for me in Singapore so I couldn't play the game."
 
Harrah's Entertainment in Las Vegas, which lost out to Las Vegas Sands, is among the bidders for the second resort.
 
The second casino resort will be on Sentosa island, known for its golf courses, amusement park and beaches.
 
 SINGAPORE Las Vegas Sands, one of the world's biggest casino operators, is paying less interest on loans to finance the first gambling resort in Singapore than it does at home in Nevada.
 
Citigroup, Goldman Sachs Group, Merrill Lynch and Lehman Brothers Holdings are leading a group lending .4 billion to Las Vegas Sands at a rate 136 basis points higher than the London interbank offered rate, a borrowing benchmark.
 
That is the smallest premium ever for the company, which paid 40 basis points more to build the Venetian hotel in Las Vegas and 140 basis points more for a loan in Macao.
 
"We're in a fortunate position where banks are figuring out a way to lend us money," William Weidner, president of Las Vegas Sands, said. "Singapore is a very well respected economy. The risk profile is low."
 
Creditors are willing to charge less to fund the Marina Bay Sands resort because the government of Prime Minister Lee Hsien Loong has pledged to license only one other casino in the next 10 years. Marina Bay is likely to produce billion in revenue in 2009, its first year, Weidner said. That is more than Las Vegas Sands collects worldwide.
 
Singapore, seeking more money from tourists, is ending a four-decade ban on casinos. The government plans to triple annual tourism revenue to billion and to double the number of visitors to 17 million by 2015.
 
"Banks are likely to lend at lower pricing to a Singapore government- sponsored project," said Stephen Ching, head of loan syndication at Citic Ka Wah in Hong Kong, which lent to Las Vegas Sands in Macao. Singapore is safer for banks because of the "limited competition in the country," he said.
 
The growth of the casino industry in Asia is outpacing the rest of the world. Annual gambling revenue from the region will double to billion by 2010, up from .9 billion last year, according to a PricewaterhouseCoopers report. Casinos worldwide will take in 5 billion in 2010, 52 percent more than last year, the report said.
 
Macao will generate billion in casino revenue this year, more than the billion from Las Vegas's main gambling strip in 2005, according to data from Morgan Stanley and the Nevada Gaming Control Board. Sands Macao and Wynn Resorts, controlled by the billionaire Stephen Wynn, are among four casino resorts that opened in Macao in the past year, bringing the total to 21.
 
The competition may be eroding profits. Stanley Ho, the founder of Macao's gambling industry, said one third of the VIP betting halls in 16 casinos he controls face bankruptcy.
 
Las Vegas Sands' financing is more expensive than loans used to fund other development projects in Singapore. Banks are charging the company almost three times the 50 basis-point interest margin on a loan of 1.6 billion Singapore dollars, or 9 million, made to the Singapore developer CapitaLand and Sun Hung Kai Properties of Hong Kong. The money is being used to build a shopping mall and an apartment complex.
 
Singapore may struggle to attract tourists for gambling as countries in the region including Japan and Thailand also consider lifting bans on casinos.
 
For lenders, more casinos mean more opportunities. Banks are likely to earn 0 million from loans funding billion worth of casino projects in Asia in the next decade, according to Bank of America estimates.
 
Citigroup, Goldman and Lehman are among the leading banks arranging the loans that Las Vegas Sands took out in Macao and Singapore.
 
The downtown Marina Bay resort, which is next to the island's business district, will feature three hotel towers linked by a sky garden, restaurants run by the celebrity chefs Charlie Trotter and Thomas Keller, and an art-and-science center shaped like a lotus flower. A 110,000-square-meter, or 1.2 million-square-foot, convention center, the biggest single venue for meetings in Asia, will be next to the casino.
 
Las Vegas Sands has already started promoting the conference space and will recoup its .4 billion investment within five years, Weidner said.
 
"Singapore is going to be great for Adelson and the opportunity is going to be fine for him," Wynn of Wynn Resorts said. "The timing was poor for me in Singapore so I couldn't play the game."
 
Harrah's Entertainment in Las Vegas, which lost out to Las Vegas Sands, is among the bidders for the second resort.
 
The second casino resort will be on Sentosa island, known for its golf courses, amusement park and beaches.
 
 SINGAPORE Las Vegas Sands, one of the world's biggest casino operators, is paying less interest on loans to finance the first gambling resort in Singapore than it does at home in Nevada.
 
Citigroup, Goldman Sachs Group, Merrill Lynch and Lehman Brothers Holdings are leading a group lending .4 billion to Las Vegas Sands at a rate 136 basis points higher than the London interbank offered rate, a borrowing benchmark.
 
That is the smallest premium ever for the company, which paid 40 basis points more to build the Venetian hotel in Las Vegas and 140 basis points more for a loan in Macao.
 
"We're in a fortunate position where banks are figuring out a way to lend us money," William Weidner, president of Las Vegas Sands, said. "Singapore is a very well respected economy. The risk profile is low."
 
Creditors are willing to charge less to fund the Marina Bay Sands resort because the government of Prime Minister Lee Hsien Loong has pledged to license only one other casino in the next 10 years. Marina Bay is likely to produce billion in revenue in 2009, its first year, Weidner said. That is more than Las Vegas Sands collects worldwide.
 
Singapore, seeking more money from tourists, is ending a four-decade ban on casinos. The government plans to triple annual tourism revenue to billion and to double the number of visitors to 17 million by 2015.
 
"Banks are likely to lend at lower pricing to a Singapore government- sponsored project," said Stephen Ching, head of loan syndication at Citic Ka Wah in Hong Kong, which lent to Las Vegas Sands in Macao. Singapore is safer for banks because of the "limited competition in the country," he said.
 
The growth of the casino industry in Asia is outpacing the rest of the world. Annual gambling revenue from the region will double to billion by 2010, up from .9 billion last year, according to a PricewaterhouseCoopers report. Casinos worldwide will take in 5 billion in 2010, 52 percent more than last year, the report said.
 
Macao will generate billion in casino revenue this year, more than the billion from Las Vegas's main gambling strip in 2005, according to data from Morgan Stanley and the Nevada Gaming Control Board. Sands Macao and Wynn Resorts, controlled by the billionaire Stephen Wynn, are among four casino resorts that opened in Macao in the past year, bringing the total to 21.
 
The competition may be eroding profits. Stanley Ho, the founder of Macao's gambling industry, said one third of the VIP betting halls in 16 casinos he controls face bankruptcy.
 
Las Vegas Sands' financing is more expensive than loans used to fund other development projects in Singapore. Banks are charging the company almost three times the 50 basis-point interest margin on a loan of 1.6 billion Singapore dollars, or 9 million, made to the Singapore developer CapitaLand and Sun Hung Kai Properties of Hong Kong. The money is being used to build a shopping mall and an apartment complex.
 
Singapore may struggle to attract tourists for gambling as countries in the region including Japan and Thailand also consider lifting bans on casinos.
 
For lenders, more casinos mean more opportunities. Banks are likely to earn 0 million from loans funding billion worth of casino projects in Asia in the next decade, according to Bank of America estimates.
 
Citigroup, Goldman and Lehman are among the leading banks arranging the loans that Las Vegas Sands took out in Macao and Singapore.
 
The downtown Marina Bay resort, which is next to the island's business district, will feature three hotel towers linked by a sky garden, restaurants run by the celebrity chefs Charlie Trotter and Thomas Keller, and an art-and-science center shaped like a lotus flower. A 110,000-square-meter, or 1.2 million-square-foot, convention center, the biggest single venue for meetings in Asia, will be next to the casino.
 
Las Vegas Sands has already started promoting the conference space and will recoup its .4 billion investment within five years, Weidner said.
 
"Singapore is going to be great for Adelson and the opportunity is going to be fine for him," Wynn of Wynn Resorts said. "The timing was poor for me in Singapore so I couldn't play the game."
 
Harrah's Entertainment in Las Vegas, which lost out to Las Vegas Sands, is among the bidders for the second resort.
 
The second casino resort will be on Sentosa island, known for its golf courses, amusement park and beaches.
 
 SINGAPORE Las Vegas Sands, one of the world's biggest casino operators, is paying less interest on loans to finance the first gambling resort in Singapore than it does at home in Nevada.
 
Citigroup, Goldman Sachs Group, Merrill Lynch and Lehman Brothers Holdings are leading a group lending .4 billion to Las Vegas Sands at a rate 136 basis points higher than the London interbank offered rate, a borrowing benchmark.
 
That is the smallest premium ever for the company, which paid 40 basis points more to build the Venetian hotel in Las Vegas and 140 basis points more for a loan in Macao.
 
"We're in a fortunate position where banks are figuring out a way to lend us money," William Weidner, president of Las Vegas Sands, said. "Singapore is a very well respected economy. The risk profile is low."
 
Creditors are willing to charge less to fund the Marina Bay Sands resort because the government of Prime Minister Lee Hsien Loong has pledged to license only one other casino in the next 10 years. Marina Bay is likely to produce billion in revenue in 2009, its first year, Weidner said. That is more than Las Vegas Sands collects worldwide.
 
Singapore, seeking more money from tourists, is ending a four-decade ban on casinos. The government plans to triple annual tourism revenue to billion and to double the number of visitors to 17 million by 2015.
 
"Banks are likely to lend at lower pricing to a Singapore government- sponsored project," said Stephen Ching, head of loan syndication at Citic Ka Wah in Hong Kong, which lent to Las Vegas Sands in Macao. Singapore is safer for banks because of the "limited competition in the country," he said.
 
The growth of the casino industry in Asia is outpacing the rest of the world. Annual gambling revenue from the region will double to billion by 2010, up from .9 billion last year, according to a PricewaterhouseCoopers report. Casinos worldwide will take in 5 billion in 2010, 52 percent more than last year, the report said.
 
Macao will generate billion in casino revenue this year, more than the billion from Las Vegas's main gambling strip in 2005, according to data from Morgan Stanley and the Nevada Gaming Control Board. Sands Macao and Wynn Resorts, controlled by the billionaire Stephen Wynn, are among four casino resorts that opened in Macao in the past year, bringing the total to 21.
 
The competition may be eroding profits. Stanley Ho, the founder of Macao's gambling industry, said one third of the VIP betting halls in 16 casinos he controls face bankruptcy.
 
Las Vegas Sands' financing is more expensive than loans used to fund other development projects in Singapore. Banks are charging the company almost three times the 50 basis-point interest margin on a loan of 1.6 billion Singapore dollars, or 9 million, made to the Singapore developer CapitaLand and Sun Hung Kai Properties of Hong Kong. The money is being used to build a shopping mall and an apartment complex.
 
Singapore may struggle to attract tourists for gambling as countries in the region including Japan and Thailand also consider lifting bans on casinos.
 
For lenders, more casinos mean more opportunities. Banks are likely to earn 0 million from loans funding billion worth of casino projects in Asia in the next decade, according to Bank of America estimates.
 
Citigroup, Goldman and Lehman are among the leading banks arranging the loans that Las Vegas Sands took out in Macao and Singapore.
 
The downtown Marina Bay resort, which is next to the island's business district, will feature three hotel towers linked by a sky garden, restaurants run by the celebrity chefs Charlie Trotter and Thomas Keller, and an art-and-science center shaped like a lotus flower. A 110,000-square-meter, or 1.2 million-square-foot, convention center, the biggest single venue for meetings in Asia, will be next to the casino.
 
Las Vegas Sands has already started promoting the conference space and will recoup its .4 billion investment within five years, Weidner said.
 
"Singapore is going to be great for Adelson and the opportunity is going to be fine for him," Wynn of Wynn Resorts said. "The timing was poor for me in Singapore so I couldn't play the game."
 
Harrah's Entertainment in Las Vegas, which lost out to Las Vegas Sands, is among the bidders for the second resort.
 
The second casino resort will be on Sentosa island, known for its golf courses, amusement park and beaches.