The Suncity Group subsidiary in the Philippines has issued convertible bonds to Fortune Noble and Summit Ascent.
Philippines.- Suntrust Home Developers, a Suncity Group subsidiary in the Philippines, has raised Php12.9bn (US$268.5m) through convertible bonds issued to Fortune Noble Limited and Summit Ascent.
Suntrust issued bonds to Fortune Noble – another Suncity Group wholly-owned subsidiary – on November 30 for the total amount of Php7.3bn (US$152m)
The remaining bonds for Php5.6bn (US$116m) were issued in favour of Summit Ascent, a wholly-owned subsidiary of Summit Ascent Holdings Limited.
The goal is to use the funds to develop a 5-star hotel and casino project at Manila Bayshore Integrated City in Paranaque City.
In the filling on Monday, Suntrust stated the conversion rights of the issued bonds in favour of Fortune Noble can only be exercised in case the company does not breach the relevant minimum public float requirement in the Philippines, which is currently at 10 per cent.
This firm currently owns 51 per cent of the company, while Megaworld Corporation holds 34 per cent.
The new Suntrust Manila casino and hotel
The funds will be used to develop an integrated resort along with Westside City Resorts World, located at Manila’s Entertainment City.
According to the latest filling from Suncity Group, the project will incorporate 400 hotel rooms, a casino with approximately 400 gaming tables and 1,200 slot machines, for both mass and VIP markets.
It will also include a parking facility with 960 spaces.
Suncity’s stake in Suntrust
Last July, Suncity Group Holdings made US$66m loan to its Philippines subsidiary in order to pay a third deposit on its Manila integrated resort project.
The move increased Suncity’s stake in the Philippines company from 51 to 74.42 per cent via a subscription of convertible bonds.
It was the third deposit the company made in the firm that will develop its new Manila integrated resort, after an initial US$20m in January and US$46m in June.