Gaming firm Belle Corp. plans to raise between P4 billion and P5 billion through a stock rights offering by the third quarter of the year to help fund the expansion of its hotel-casino development at the state-initiated Entertainment City by Manila Bay.
In a disclosure on Tuesday, Belle Corp., which is backed by the group of retail magnate Henry Sy, said that while the final issue size is yet to be determined, the proceeds should complete the firm’s funding requirements for the project.
“The company is undertaking the rights issue to raise funds for its Belle Grande Manila Bay project,” the company said.
In a separate text message, Belle vice chairman Willy Ocier said this would add to funds previously raised from a credit line with a local bank.
“Proceeds from the offering, together with the P5.6 billion in loan facilities from Banco de Oro Unibank, will be sufficient to fund our construction needs for the Belle Grande project,” Ocier told the Inquirer.
The specific terms and conditions of the rights issue, including the final issue size and offer price, will be determined “at a later date,” the company said.
BDO Capital & Investment Corp. was named underwriter for the rights issue.
Belle expects to start operations of the $750-million casino complex near Manila Bay—a new project that will transform it from an upscale property developer to a premier gaming and leisure estate company—by the first quarter of 2013.
The soft opening was earlier scheduled for late 2012 but a little more time will be needed to finish all the hotel rooms for full operations.
Belle was one of the four companies to bag gaming licenses allowing them to set up shop at the Philippine Amusement and Gaming Corp. (Pagcor) Entertainment City.
Belle plans to spend about $550 million for the development of the casino, hotel, condotel and theater complex, while its partner Leisure and Resorts World Corp. (LRWC) will contribute $200 million for casino fit-out and working capital.
The integrated gaming resort complex, between Macapagal Avenue and Roxas Boulevard, will offer 19,626 square meters of gaming space.