SJM secures loan to fund Palace construction

SJM Holdings has negotiated a HK$25 billion (US$3.2 billion) loan in order to finance the construction of its new Grand Lisboa Palace development.

The casino operator on Thursday announced the signing of the syndicated loan facilities agreement, which consists of a HK$15 billion term loan facility with final maturity in 2022, and a HK$10 billion revolving credit facility with final maturity in 2020.

According to a press release from SJM Holdings on Thursday, 19 financial institutions are part of the loan agreement.

Representing SJM at the signing ceremony were chairman Dr. Ambrose So, managing director and chief administrative officer Ms. Angela Leong and director Dr. Rui Cunha, as well as ICBC (Macau) chairman Mr. Zhu Xiaoping, CEO Mr. Wu Long and Deputy CEO Mr. Felix Chan.

“We are delighted to see the positive response of the banking community to these loan facilities. We believe this reflects the strength of SJM and the brilliant prospects of our Grand Lisboa Palace project, which is scheduled to open in the first half of 2018. Moreover, this transaction demonstrates the confidence of the capital markets in participating with us in helping Macau achieve its destiny of becoming a world centre of tourism and leisure,” said Dr Ambrose So.

Mr. Wu Long said in his speech, “ICBC (Macau), acting as Global Mandated Lead Arranger, Sole Bookrunner, Facility Agent and Security Agent, has successfully arranged these HK$25 billion Syndicated Loan Facilities with total 19 commercial banks involved. The Facilities are oversubscribed by 1.2 times and are the largest syndicated loan facilities in Macau in recent years, which will help boost the confidence in Macau’s economy after the economic contraction in the past few years. Following the promotion of moderate economic diversification, there will be huge business opportunities for the local tourism and leisure industry, and ICBC (Macau) will continue to provide excellent financing services to meet the needs of the industry.”