Bankers had expected the company to have worked out details of the loan by the end of last month and completed the deal within a month.

Representatives from about 40 banks visited the Venetian last month.

'The number [of banks visiting the site] was more than expected, but they were concerned about intensifying competition in Macau and falling earnings among casinos,' said one banker.

A Venetian spokesman declined to comment.

Casino revenues in Macau fell 3.1 per cent in the second quarter to 28.89 billion patacas, the first quarter-on-quarter decline since the market was liberalised in 2005, as mainland visitors reduced trips in the wake of a devastating earthquake in May and a sluggish stock market. The figure was up 47.6 per cent from last year.

The large number of construction projects from local, regional and international gaming companies and a heavy concentration on luxury housing units have been a cause of overcapacity concerns.

'I'm just not convinced of the demand in Macau when wealthy Chinese have so many options to buy elsewhere,' a market observer said.

The Venetian had set a rough funding target of US$7 billion this summer, but lowered its goal to US$5.25 billion last month. Since then, sources said, the firm had lowered its expectations further and was likely to raise less than US$5 billion.

'That was a big loan for this kind of market,' said a banker who has been involved in lending in Macau.

With credit markets freezing up because of the subprime crisis, banks have not only pulled back on lending but are charging more for the loans they do become involved in.

The largest syndicated loan in Asia this year was US$3.85 billion, taken out by the hotel-casino project Marina Bay Sands, Dealogic said.

Sheldon Adelson, the magnate behind the Venetian, is also building the Marina Bay Sands in Singapore.

Five banks - Lehman Brothers, Citi, Goldman Sachs, BOC International and Standard Chartered - would arrange the Venetian's five-year financing plan, sources said.

The company borrowed US$2.5 billion in May 2006 and a year later reopened the deal, raising the loan to US$3.3 billion. The Venetian had US$247.2 million of the loan remaining at the end of June, according to a filing dated August 11.

The new loan would refinance that and fund the construction of hotel and casino complexes including the Four Seasons Macau, and two hotels each with a casino run by Shangri-La Hotels & Resorts and Starwood Hotels & Resorts Worldwide.

The Four Seasons will have 400 high-end hotel rooms, serviced apartments, a casino and retail space. The other four hotels combined will contain 6,400 rooms, more than twice the size of the 3,000-room Venetian. Construction costs are expected to total US$3.3 billion.

In the August 11 filing, the Venetian said it had about US$4 billion of the US$12 billion needed.