Genting Singapore may raise up to US$1.6bln debt from 2027: CreditSights

Genting Singapore Ltd could raise up to SGD2 billion (US$1.56 billion) in debt from 2027 to help fund the expansion of the Resorts World Sentosa casino resort (pictured) in Singapore, while also maintaining cash reserves, says CreditSights. The institution had a cautious view on the potential returns from the investment in the ongoing expansion of the complex. The research firm said in a recent report that the casino operator’s investor relations team had indicated a preference to retain a minimum cash balance of SGD500 million to SGD1 billion. The funding instrument for debt issuance had yet to be determined. CreditSights expects Genting Singapore to take on SGD1.5 billion to SGD1.75 billion in debt during 2027 and 2028. It projects the company will by 2029 have lost its current net cash position, as capital spending and dividend payments absorb existing reserves. The report followed a recent meeting with Genting Singapore’s investor relations team and examined the SGD6.8-billion Resorts World Sentosa expansion, known as RWS 2.0, as well as the operator’s competitive position and importance to parent Genting Bhd. CreditSights described the expansion as “a costly but necessary investment” to maintain competitiveness, but questioned whether the resulting earnings would justify the spending. “The key question for us and investors is whether RWS 2.0’s earnings uplift will be commensurate with its significant capex. We are more cautious than convinced,” wrote analysts Jonathan Tan Jun Jie and Lakshmanan R. According to the report, Genting Singapore’s share of Singapore’s net gaming revenue stood at approximately 23 percent in the first half of 2026, compared with 30 percent in 2024 and 43 percent in 2013. Rival Marina Bay Sands, run by a unit of Las Vegas Sands Corp, accounted for the balance. CreditSights attributed the longer-term market share losses to Resorts World Sentosa’s location disadvantage and weaknesses in execution, relative to its duopoly competitor. Marina Bay Sands’ central location and luxury positioning gave it better access to affluent gamblers, business travellers and convention visitors, the analysts stated. RWS 2.0 includes two new luxury hotels with 700 rooms, additional attractions at Universal Studios Singapore, and new shopping, dining and waterfront facilities, with completion of the fresh facilities due progressively through to 2030. Genting Singapore’s investor relations team believes upgraded casino facilities, refurbished hotels and new luxury accommodation should strengthen the resort’s appeal to premium-mass customers, CreditSights noted. The investor relations team indicated that earnings before interest, taxation, depreciation and amortisation (EBITDA) should recover incrementally between 2027 and 2030, exceeding SGD1 billion from 2030 onwards. CreditSights was more conservative, forecasting EBITDA of SGD863 million in 2030. Its base case assumes a modest earnings uplift from RWS 2.0, driven mainly by non-gaming operations. The research firm said Marina Bay Sands’ strength in premium mass gaming could limit Genting Singapore’s ability to move into higher-spending customer segments or regain meaningful market share. It also warned that hotel closures and phased casino renovations at Resorts World Sentosa would continue to affect operations. The company’s investor relations team, however, said most major disruptions were already behind it, with forthcoming work expected to be less disruptive than earlier overhauls. Casino upgrades began in July 2026 and would be conducted pit by pit during periods of lower visitation, according to the report. On spending, the investor relations team indicated approximately SGD4.7 billion remained under the RWS 2.0 budget. It said prevailing construction costs had already been incorporated, with most construction contracts fixed, limiting cost escalation risks. Genting Singapore also reaffirmed its intention to maintain an annual dividend of SGD0.04 per share through the expansion, CreditSights said.