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Friday, March 29, 2024

PH Resorts seeks $600-million loan to finance Mactan casino

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PH Resorts Group Holdings Inc., the gaming and tourism holding company of businessman Dennis Uy, plans to close a $600-million funding deal for its first integrated resort and casino in Mactan, Cebu within the next two to three months

PH Resorts president Raymundo Martin Escalona said in an interview following the annual stockholders’ meeting held in Clark, Pampanga the company was looking to raise debt and equity to finance the construction of The Emerald, an integrated resort and casino scheduled for completion by the end of 2020.

Escalona said the company was finalizing the structure of the financing program. He noted that state-owned Philippine Amusement and Gaming Corp. wanted PH Resorts to raise up to 70 percent of the total project cost through debt financing and at least 30 percent from equity infusion.

“We are hoping to complete our fundraising activity over the next two to three months,” Escalona said.

He said the company tapped China Banking Corp. to the syndicate the term loan facility.

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PH Resorts earlier had planned to conduct share sale to raise fresh capital to fund its casino projects. The company in March decided to defer the follow-on offering because of poor market conditions.

Escalona, however, said the company remained keen on conducting a share sale to widen its public float.

“The intention of PH Resorts is to really go to the market. We have the option, until the end of 2020, depending on the market situation,” Escalona said.

PH Resorts earlier obtained shareholders’ approval to increase its capital stock to P15 billion from P8 billion in line with the planned share sale, 

The first phase of The Emerald involves the construction of 400 hotel rooms. The gaming area will offer 100 tables and 600 electronic gaming machines.

Escalona is confident about the prospects of The Emerald, the first integrated resort and casino that will operate in Mactan, Cebu.

“We are very optimistic about the project. If you look at gross gaming revenue, growth rate of in the Philippines in the last seven years is above 20 percent. That will continue to grow to help tourism,” Escalona said.

He said it was more convenient for tourists to come to Mactan rather than to the Entertainment City in Parañaque City because of improved infrastructure and the expansion of the Mactan-Cebu International Airport.

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