Summit Ascent Investments Ltd, a directly-held unit of Hong Kong-listed Summit Ascent Holdings Ltd, has agreed to subscribe to convertible bonds in the principal amount of up to PHP8.63 billion (US$152.5 million) to be issued by Suntrust Resort Holdings Inc, the developer of a casino hotel scheme (pictured in an artist’s rendering) at Westside City in the Philippine capital Manila.
The convertible bonds will be issued in tranches in a minimum denomination of PHP10.0 million, and have a default interest of 8.0 percent per annum “on all amounts overdue from the due date for payment up to and including the date of full payment”, according to a Wednesday filing.
Suntrust is developing the main hotel casino at the Westside City complex, which is expected to start operations by the fourth quarter this year, according to a November announcement by the Philippine-listed entity.
Summit Ascent’s filing said the current construction and development costs before Suntrust’s hotel casino can start operation are estimated at US$1.25 billion, of which US$964 million “has already been raised” as of Wednesday’s filing date. Previously, Suntrust had said the cost to build and open the complex stood at US$1.1 billion.
The property is to feature about 400 rooms, and a casino venue that will offer 400 gaming tables and 1,200 slot machines for both mass and VIP markets.
In April last year, the firm had mentioned that gaming and hotel operations at the complex, part of Manila’s Entertainment City zone of large commercial gaming resorts, were expected to start in the first quarter of 2025.
Philippine conglomerate Alliance Global Group Inc controls – via its units – a 34.7-percent stake in Suntrust. Alliance Global, via its unit Travellers International Hotel Group Inc, is the provider of the gaming licence for the complex. Travellers International already operates the Newport World Resorts casino complex in Manila.
Suntrust and Summit Ascent are controlled by casino investor Hong Kong-listed LET Group Holdings Ltd, a firm chaired by businessman Andrew Lo Kai Bong.
