New US$60 million loan for Hoiana IR

Suncity Group has found 50 per cent of the new loan, while the remainder will come from project partner Alpha Era.

Vietnam.- Investors in the Hoiana resort have found another US$60 million in loans for the project.

Kong-based Suncity Group said in a filing that it will provide half of the cash through a loan obtained via its indirect wholly owned British Virgin Islands-based subsidiary Star Admiral at an annual interest rate of 14 per cent.

The money is being advanced to another British Virgin Islands company, Gold Yield Enterprises, which is jointly owned by Star Admiral and Alpha Era, Suncity’s partner on the Hoiana development. Alpha Era itself will provide another US$30 million loan under the same terms.

Gold Yield Enterprises’ main project is the Hoiana casino resort complex at Hoi An South in Vietnam’s Quang Nam Province.

Gold Yield in turn is advancing the cash to Hoi An South Development Ltd, the Vietnam-incorporated owner of the project.

The funds add to around US$65 million the group has already put forward for the scheme, and another US$34 million already supplied by an indirect wholly-owned subsidiary.

Hoiana offered a preview last month and is due to open next year.

Suncity is said to be seeking opportunities in tourism-related business in the South East Asia region, including Vietnam and Korea.

In the filling Suncity stated: “In light of the increasing demand for tourism-related business in the South East 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 and the project.

“It is necessary for GYE and the Project to have sufficient fund for its future business development and to meet its capital needs for development”.