Singapore-based company secures deals to establish casino and bank in Timor-Leste

SINGAPORE: Singapore-based investment holding company, Asia-Pacific Strategic Investments (APSI), has secured a significant opportunity to expand its presence in Timor-Leste by signing two key cooperation agreements with the government on 8 February. The agreements pave the way for the company to establish both a casino and a bank in the Southeast Asian nation.

The agreements were formalized with Timor-Leste’s Vice Prime Minister, the Coordinating Minister for Economic Affairs, and the Minister of Tourism and Environment. These landmark agreements mark a crucial step in Timor-Leste’s efforts to diversify its economy and bolster tourism and financial services.

Under the terms of the first agreement, APSI and its subsidiaries are granted an exclusive license to build a casino in Timor-Leste, with plans to complement the facility with a luxurious 5-star hotel. The casino will adhere to high standards of security and legal compliance, aimed at attracting international clientele. APSI has also committed to developing comprehensive marketing strategies to position both the hotel and casino as prime destinations for tourists.

In addition to the casino and hotel project, APSI has pledged to promote Timor-Leste’s tourism industry through various initiatives. These include the promotion of local seaports, scenic attractions, and activities such as whale, dolphin, and crocodile watching, as well as yachting and scuba diving. The project aligns with the country’s broader efforts to diversify its tourism offerings and establish itself as a leading destination in the Asia-Pacific region.

In a separate agreement, APSI has also committed to establishing a new bank in partnership with Banco Nacional de Comercio de Timor-Leste. APSI will hold a 60% stake in the venture, which is expected to play a key role in enhancing the country’s banking infrastructure and supporting economic growth.

The establishment of the bank is set to provide a range of financial services to businesses and individuals in Timor-Leste, further contributing to the nation’s economic development.

To fund these ambitious projects, APSI plans to issue convertible bonds worth $135.3 million (US$100 million). The bonds will be subscribed to by Oei Hong Leong, the company’s controlling shareholder. However, the proposed investments are still subject to approval by the company’s shareholders.

These new ventures come as Timor-Leste continues to seek opportunities for economic diversification, with the casino and banking projects expected to bring significant investment and job creation to the country.

The agreements represent a major milestone for Asia-Pacific Strategic Investments and Timor-Leste. Both projects are expected to have long-term benefits for the nation’s economy, while offering APSI the opportunity to establish a strong foothold in the burgeoning Southeast Asian market. Further developments will be closely watched as the approval process progresses and plans for implementation unfold.