Suntrust Resort Holdings Inc, the developer of a casino scheme in the Philippines’ capital Manila, says the board has authorised it to “negotiate and enter into a loan facility” of up to PHP25.00 billion (US$446.4 million) with China Banking Corp.
The financial institution concerned, commonly known as China Bank, is a Philippines-based privately-owned commercial bank.
Philippines-listed Suntrust said in a Friday filing that it will have to “execute an omnibus loan and security agreement” with China Bank and other relevant parties. Steps required include, among others, conclusion of a loan facility agreement, a mortgage agreement, and a security agreement.
Suntrust’s chairman, Andrew Lo Kai Bong, and the firm’s president, David Chua Ming Huat, will – acting singly – be the “company’s authorised signatories” for the transaction, stated the filing.
Suntrust is controlled by Hong Kong-listed LET Group Holdings Ltd. Mr Lo is also the latter’s chairman.
In April, LET Group had said it was seeking financing to complete the development of the casino hotel being developed by Suntrust.
The casino hotel complex (pictured in an artist’s rendering) is part of the Westside City project, being developed by Philippine conglomerate Alliance Global Group Inc. It is to feature 460 five-star rooms, and a casino establishment that “would cater to both mass and VIP markets,” according to information previously disclosed by the firm.
The project had been described as having a price tag of approximately US$1 billion.
Suntrust said last month that construction work for the casino hotel in Manila had reached level 10 as of the end of the first quarter. The firm also reaffirmed a plan to launch operations in 2024.
In late May, Suntrust announced that its board had agreed to a US$6-million loan from a related party controlled by company chairman, Mr Lo.
