As reported by: Bloomberg
Las Vegas Sands Corp., the world's biggest casino operator by market value, is paying less interest on loans to finance the first gambling resort in Singapore than it does at home in Nevada.

Citigroup Inc., Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. are leading a group lending $1.4 billion to Las Vegas Sands at a rate 136 basis points over the London interbank offered rate, a borrowing benchmark. That's 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 Macau, according to data compiled by Bloomberg.

"We're in a fortunate position where banks are figuring out a way to lend us money," said President William Weidner in an interview while visiting Singapore. "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 Prime Minister Lee Hsien Loong's government has pledged to license only one other casino in the next 10 years. Marina Bay is likely produce $2 billion of revenue in 2009, its first year, more than Las Vegas Sands collects worldwide, said Weidner.

Singapore, seeking more money from tourists, is ending a four-decade ban on casinos. The government plans to triple tourism revenue to $19 billion and double 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 Ltd. in Hong Kong, which lent to Las Vegas Sands in Macau. Singapore is safer for banks because of the "limited competition in the country," he said.


Article By: Bloomberg