SINGAPORE — Las Vegas Sands Corp., the world's largest casino operator by market value, is seeking a record loan in Singapore currency to fund construction of the nation's first gambling house, three people familiar with the deal said.

The gaming firm hired eight banks including Goldman Sachs Group Inc. and locals DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. to arrange the $3.3 billion borrowing, according to the people, who declined to be identified because the information is private.

Regulated gambling including casinos in the Asia-Pacific market will expand 15.7 percent a year to $30.3 billion in 2011, according to PricewaterhouseCoopers LLP. Singapore will compete for Asian gamblers with Macau, the Chinese city that reaped $7 billion in gaming revenue in 2006, surpassing the Las Vegas Strip as the world's biggest casino market.

GROWTH IN ASIA

"Asia will contribute the most to growth of the global gaming industry, and market share here is important for gaming companies and for Las Vegas Sands," said Poh Huay Imm, Singapore-based equity specialist at Deutsche Bank AG's private wealth management group. "Las Vegas Sands' casinos in the U.S. are cash cows and will help fund its Asian expansion."

Asia Pacific will by 2011 replace Europe, the Middle East and Africa as the second-biggest gaming market after the U.S., PricewaterhouseCoopers said in a June report.

The other four arranging banks are Morgan Stanley, Merrill Lynch & Co, Lehman Brothers Holdings Inc. and Citigroup Inc.

Ron Reese, spokesman for Las Vegas Sands, didn't reply to an e-mail sent by Bloomberg. Spokesmen at the banks either declined to comment or could not be immediately reached.

In its efforts to lure visitors and triple tourism revenue to $19 billion by 2015, Singapore lifted a four-decade ban on casinos in 2005, pledging to license only two within 10 years.

The second casino will be on Sentosa island, known for its golf courses, amusement park and beaches, and will be built by Genting International Plc.

"It's a big gamble, clearly, and too early to tell if the returns will be good," said Lim Kok Boon, chief investment officer in Singapore at Fortis Private Banking, which manages $9.5 billion of assets. "But duopoly is very attractive for casino operators in a developed market like Singapore."

Casino revenue in Asia Pacific will double to $25.5 billion in 2011 from $12.1 billion in 2006, with 79 percent of the growth generated in Macau and Singapore, PricewaterhouseCoopers said.

Singapore will receive $2.2 billion in annual revenue from 2011 when both casinos are operating, the PricewaterhouseCoopers report said.

LOAN COSTS

Part of the S$5 billion will be used to repay a $1.4 billion 12-month borrowing arranged a year ago, according to the people. The S$5 billion loan, maturing in seven to eight years, will be the largest ever made in Singapore currency, according to data compiled by Bloomberg. It will be backed by the casino.

The interest margin on the loan will be between 2 percentage points and 2.5 percentage points more than the swap offer rate on Singapore currency, according to the people. The three-month rate is fixed at 2.62 percent today.

That compares with 2.75 percentage points more than the London interbank offered rate Las Vegas Sands is paying on $3.3 billion borrowed last year for its Macau expansion, a loan that matures in 2011. The three-month Libor rate is 5.59 percent.

"Banks will likely create a syndicate to spread the risk," Lim said.

PROFIT DECLINES

Second-quarter profit at Las Vegas Sands, run by billionaire Sheldon Adelson, fell 69 percent as interest payments on funds borrowed to expand in Asia more than doubled from a year earlier to $54.4 million.