Hong Kong-listed Suncity Group has announced that the company behind HOIANA Integrated Resort has been advanced a new loan of around US$34 million to assist with future business development and capital needs.
According to Suncity’s filing to the Hong Kong Stock Exchange, the loan comes from Star Admiral Limited, an indirect wholly-owned subsidiary of SunCity, and Alpha Era Investments Limited, two companies that each own 50 percent shareholding in Gold Yield Enterprises Limited (GYE), which is the main company behind the development of HOIANA IR.
Suncity said the loan amount was determined after arm’s length negotiations taking into consideration the capital needs of GYE for its business development in the project.
Under the loan agreement, interest applied to the loan is 1.5 percent per annum, with a term of 5 years from the first drawdown date. GYE is expected to repay the principal amount and interest of the loan upon the expiry of the term.
The loan is expected to be withdrawn by GYE in around late March 2020.