THE M3: MACAU RESERVES AND GALAXY

The Macau Metro Monitor.  November 19th 2009.

MACAU HAS FINANCIAL RESERVES OF US$12.5 BILLION macaunews.com.mo

The Chief Executive of Macau, Edmund Ho Hau Wah, said on Wednesday that accumulated budget surpluses and the Reserve Fund of the Special Administrative Region of Macau are expected to be over MOP 100 billion (US$12.5 billion) at the end of the year.  He stated the government’s intention to “continue to implement measures for exemption and reduction of taxes adopted over the last few years, with the aim of helping companies and citizens to face up to the pressures and difficulties resulting from the international financial crisis”.

GALAXY SEEKING TO RAISE US$1B FOR COTAI PROJECT scmp.com

Galaxy Entertainment Group is attempting to raise more than US$1 billion to complete the construction of its Cotai mega resort, according to sources cited by the South China Morning Post.  While details have yet to emerge, “people with direct knowledge of the plans” said that the financing package may include high-yield or convertible bonds, syndicated bank loans or a combination of bonds and bank debt. 

Galaxy is attempting to tap local markets to fund construction at the same time as Las Vegas Sands Corp who, in the past week, announced that it had secured commitments from banks for US$1.45 billion of a total US$1.75 billion in new loans it was seeking to restart works on Lots 5&6.