Suncity Group has announced details of a series of loan agreements that will see Gold Yield Enterprises Limited (GYE) – the majority owner of Vietnam integrated resort Hoiana of which it holds a 50% stake – receive US$34 million for investment into and development of the project.
In a filing to the Hong Kong Stock Exchange, Suncity revealed that its wholly-owned subsidiary, Star Admiral Ltd, and Alpha Era Investments Limited – which holds the other 50% interest in GYE – will each provide loans of US$17,022,500 to GYE for the sole purpose of ongoing development at Hoiana.
The US$4 billion project is due to open in the current quarter.
Under the terms of the loan agreement, GYE will pay interest of 1.5% per annum, with the principal amount and interest to be repaid at the expiry of the stated five-year term.
“Upon the successful implementation of the project in Vietnam, it is expected that there are business prospects and also room for business growth for GYE,” Suncity said. “In light of the increasing demand for tourism-related business in the Southeast Asia region, the Board holds a positive outlook for the project in the future and it is expected that the Group will benefit from the future success of GYE.
“It is necessary for GYE to have sufficient fund for its future business development and to meet its capital needs.”
Suncity has previously loaned GYE almost US$65 million for development of Hoiana, with this latest advance taking the total loan amount to US$82 million).