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Marina Bay Sands Pte. has obtained a S$12 billion ($9 billion) multi-tranche loan to fund a planned expansion of its casino resort in Singapore, according to a person familiar with the matter, marking the largest such financing in the city state ever. DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. were the coordinating banks on the credit facility, which attracted 22 other lenders when it was syndicated to the broader market, the person said, who asked not to be named discussing private matters. A representative at Marina Bay Sands said the company doesn’t have “any information to provide at this time” when asked about the deal, while its parent Las Vegas Sands Corp. didn’t immediately respond to requests for comment sent outside normal working hours. The loan will be used for refinancing and to fund the expansion of the company’s integrated resort, the cost of which is expected to balloon to $8 billion from the original estimate of about $3.4 billion made in 2019. Marina Bay Sands’ expansion plans come as Singapore’s tourism industry has staged a sharp rebound since the pandemic. International visitor arrivals in the city state last year increased by 21% to 16.5 million, led by tourists from China, Indonesia and India. The previous syndicated loan record in Singapore was a S$9.3 billion facility signed in 2012, which financed the acquisition of food and beverage maker Fraser & Neave Ltd. by Thai billionaire Charoen Sirivadhanabhakdi’s TCC Assets Ltd.
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French President Emmanuel Macron invited regional leaders including Germany’s Olaf Scholz and Italy’s Giorgia Meloni to Paris on Monday for urgent discussions on Ukraine and the continent’s security, according to people familiar with the plans. Traders are already pricing inpotential for higher defense costs, damping the outlook for the region’s sovereign bonds should the debate on using common debt to fund their efforts intensify. German 10-year bund futures indicateyields on the underlying cash securities may open more than four basis points higher, while similar-maturity French contracts indicate a three-basis-point increase. Pressure appears to be building on the euro, too. While the shared currency has strengthened 1.3% against the dollar this month, hedge funds raised their bearish wagers to their highest this year, according to the latest data from the Commodity Futures Trading Commission. “The US-Russia peace talks appear to shift a large burden to Europe,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “Many suspect this coupled with increased defense spending, will boost the supply of longer-term European debt.”
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The biggest impact from any peace deal on the rates market is probably more from increased fiscal spending rather than the disinflationary impact of falling gas prices,” Danske Bank A/S strategists including Minna Kuusisto wrote in a note. “More fiscal spending could lead to more inflation in the long run, thus adding pressure on the long end of the yield curve.” A peace deal to end the war in Ukraine is likely to lead to higher bond issuance by European governments, increasing term premiums or bond risks, and steepening yield curves in the region, the analysts wrote.
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European bonds may come under some selling pressure Monday on speculation a meeting in Paris between the bloc’s leaders will point toward higher spending plans to bolster the continent’s security. Investors may demand higher yields on government debt across the region on concern officials will seek to beef up military investment as US peace proposals suggest America is losing appetite to support Ukraine. Upgrading defense and protecting Ukraine may cost Europe’s major powers an additional $3.1 trillion over 10 years, Bloomberg Economics estimates.
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