Genting Singapore (G13.SG) could be considering paying dividends as it is refinancing its $4.19 billion debt, says Citigroup, which has a Buy call with a $2.75 target.

According to Genting, the 7-year syndicated loan from 5 banks will give it more flexibility in using the funds.

“With the covenant of the existing debt, Genting Singapore is restricted from (paying dividends) until the group starts repaying its loan,” Citigroup says.

Notes Genting currently pays SGD swap offer rate plus 1.75%, but will pay 1.6% for the first 3 months and swap offer rate plus 1.2%-1.6% under the new facility.

The existing loan was taken in 2008 to build Resorts World Sentosa.

While the refinancing is positive, investors are hardly swayed, with shares down 1.8% at $2.16 after a sustained rise over the past 7 sessions. Support is tipped at the 10-day moving average, last at $2.10.