The money's almost in the bag. Its gonna go soon ..... for sure this time.
July 16, 2010 - basis point - The S$1.8bn Singapore Sports Hub project financing is expected to be signed next month, banking sources said.
Banks are processing internal credit approvals after completing due diligence on the project.
The S$1.8bn facility is said to comprise a S$1.5bn 10-year term loan and a S$300m bridging loan with an around five-year tenor, as previously reported.
The all-in for the term loan is said to be around 300bp via a margin of 250bp over Libor, while the margin for the bridge is said to be below 200bp.
The bridge, which is to provide equity to the sponsors, could have credit enhancements.
The debt service coverage ratio is expected to be adjusted to 1.15 times from the original 1.1 times proposal.
Eleven banks are expected to form a club: Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Credit Agricole CIB, DBS Bank, HSBC, National Australia Bank, Natixis, OCBC Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and WestLB.
Banks received an initial term sheet in December 2009.
On 11 November 2009, HSBC sent out the request for proposals to banks on behalf of the Dragages Singapore Pte Ltd-led consortium, restarting a process which had been on hold since early 2009 due to adverse market conditions.
Under the public-private partnership project, the consortium will sign a 25-year contract with the Singapore Sports Council and will be responsible for the design, financing, construction, operation and maintenance of the project.
Only 75% of the revenue from the project is expected to be contracted throughout the 25-year lease, with 25% from other sources. These could include car park revenues, corporate boxes and club seats sales, sales of naming rights and advertising, third-party promoter events and rental revenues from retail shops.
The construction, estimated to cost S$1.87bn, is expected to take three years to be completed. The project's completion date, which was announced in 2005, is expected to be pushed back to 2013 from 2010.
The consortium comprises Dragages Singapore, HSBC Infrastructure Fund, United PREMAS Ltd and Global Spectrum Asia Pte Ltd.