MGM Announces $300M Financing for Osaka IR
MGM Resorts International has confirmed that financing has been secured for the construction of MGM Osaka, Japan's first integrated resort with a casino. The update was provided by Sarah Rogers, senior vice president of corporate finance at MGM Resorts, during her remarks at the Bank of America Securities 2025 Gaming & Lodging Conference.
LISTEN TO THIS ARTICLE:The ground-breaking ceremony for MGM Osaka took place on April 24. The complex, located on Yumeshima, an artificial island in Osaka Bay, is slated for completion in the summer of 2030.
Related: Japan Tourism Agency Shows Optimism on Timeline for MGM Osaka CompletionThe resort is expected to open in the autumn of that year, following final preparations, testing, and regulatory checks. The development will feature a casino, multiple hotels, dining, entertainment, retail, and convention facilities, aligning with Japan's vision for integrated resorts as tourism drivers.
Rogers explained that the financing structure for MGM Osaka begins with equity commitments, with debt financing planned for later phases of the project. She said the financing currently stands at JPY380 billion (US$2.6 billion).
MGM Resorts will contribute about $300 million in 2025, with planned annual investments ranging from $500 million to $600 million in subsequent years. Debt financing is scheduled to be introduced at a later stage to support the final stages of construction.
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The MGM Osaka project carries an overall price tag of JPY1.27 trillion. MGM Resorts has described the development as a flagship initiative in its global portfolio, with the goal of establishing Osaka as a world-class entertainment and tourism destination.
The project is being advanced through a consortium led by MGM Resorts and Orix Corp, with MGM controlling a 43.5% stake. Several Japanese companies have joined as minority investors, creating broad-based support from both international and domestic partners.
Rogers also addressed the company's balance sheet during her remarks. She pointed out that MGM Resorts has repurchased more than 40% of its outstanding shares in recent years.
With obligations for Japan requiring significant capital allocation, the pace of share repurchases is expected to slow. However, she noted that if market conditions made repurchasing favorable again, the company would consider it as an option to enhance shareholder value.
Earlier this year, MGM Resorts' chief financial officer Jonathan Halkyard confirmed that the Osaka consortium has secured a JPY530-billion credit facility to help finance the project. The facility is structured to become available in 2028, ensuring continued funding through the final stages of development and carrying the project through its scheduled opening in 2030.
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