GGRAsia – Hoiana backers loan extra US$60mln for Vietnam scheme

Hoiana backers loan extra US$60mln for Vietnam scheme

Jul 07, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck

Investors in the Hoiana casino resort scheme in Vietnam are advancing a further US$60 million for the project, according to a Monday filing in Hong Kong by one of the overall backers, Suncity Group Holdings Ltd. It takes the tally of announced advances from the group and an “independent third party” to US$159 million.

The new US$60 million advance adds to approximately US$65 million the group has already advanced for the scheme; and a further US$34 million supplied by an indirect wholly-owned subsidiary of the group.

The fresh US$60 million consists of US$30 million from Star Admiral Ltd, a British Virgin Islands (BVI) firm that is an indirect wholly-owned subsidiary of Suncity Group Holdings Ltd.

That US$30 million is being advanced to Gold Yield Enterprises Ltd, another BVI firm, that is 50-percent owned by Star Admiral and 50-percent owned by Alpha Era Investments Ltd, a BVI entity said in the filing to be owned by the independent third party.

The interest on the loan is 14 percent per year with accrued interest payable every three months, according to Suncity Group Holdings’ filing.

Gold Yield Enterprises and its units are principally engaged in the Hoiana scheme, a casino resort complex at Hoi An South, Quang Nam Province, in Vietnam.

Gold Yield in turn is advancing the money to Hoi An South Development Ltd, a company incorporated in Vietnam and the owner of the project.

The other US$30 million of the fresh US$60 million for Hoiana is coming from the independently owned Alpha Era.

On Friday Suncity Group Holdings – controlled by Macau junket boss Alvin Chau Cheok Wa – told the Hong Kong Stock Exchange it had secured an agreement to extend the maturity date by “24 months” respectively to August 28, 2022, on some no-interest convertible bonds and on a promissory note.

The instruments had helped the company to acquire a 34-percent indirect stake in the Hoiana scheme at a total consideration of HKD600 million (US$77.4 million).

A preview of Hoiana operations, including its casino, started on June 28. Suncity Group Holdings has said that a full opening of the property is due to take place in 2021.