In osaka, japan, MGM has obtained a yen-denominated credit facility valued at US$300 million to support the ongoing construction of its integrated resort (IR) project, estimated at approximately US$10 billion. The loan is provided by Sumitomo Mitsui Banking Corporation with an interest rate near 2.5%, maturing in October 2030. There is an option to increase the credit limit up to US$450 million, reinforcing funding certainty as all project components are currently under development.
MGM CEO Bill Hornbuckle confirmed that every element of the Osaka IR construction is underway, describing the financing as a clear endorsement from lenders of the project's solid progress. Hornbuckle emphasized that this funding arrangement ensures the project maintains its schedule and meets market expectations for a premium integrated resort experience in japan.
Under the Act on the Promotion of Development of Specified Complex Resort Areas, IR projects in japan must secure comprehensive regulatory approval and adhere to stringent development guidelines. This legislation mandates adequate financial assurances for the construction phase to reduce risks of delays or shortfalls. The credit facility obtained by MGM demonstrates compliance with these legal requirements and supports transparent project financing.
The injection of capital signals positive momentum for the Osaka IR initiative, which is expected to stimulate local employment and engage regional supply chains. MGM's parallel reporting of increased visitation and revenue at its Macau operations further validates the company’s focus on high-end gaming and hospitality offerings. This financing move may also influence future investment models within the nascent Japanese IR sector.
With construction fully in motion and financial backing secured, MGM faces a critical juncture to transform Osaka into a competitive regional destination. The question remains whether this credit facility will accelerate the resort’s completion and market positioning under the watchful eye of Japan’s regulatory framework.
