Majority owner of Vietnam IR Hoiana granted new US$34 million cash injection

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Hong Kong-listed Suncity Group has announced a new loan of US$34 million to the subsidiary that holds a majority stake in Vietnam integrated resort Hoiana as the project edges ever closer to launch.

The latest in a series of recent cash injections provided by Suncity Group, via its wholly-owned subsidiary Star Admiral Limited, and fellow stakeholder Alpha Era Investment Ltd – each of which hold an equal 50% share – will see GYE receive a total of US$34,045,000 of which Star Admiral and Alpha Era will contribute US$17,022,500 each.

The size of the loan is identical to one provided in early January and on similar terms, with GYE to pay interest of 1.5% per annum and repay the principal amount and interest at the expiry of the stated five-year term.

Suncity has previously loaned GYE around US$82 million for development of Hoiana, with this latest advance taking the total loan amount to US$99 million.

Outlining its reasons for the loan, Suncity said, “The Group has a substantial stake in GYE. Upon the successful implementation of the project in Vietnam, it is expected that there are business prospects and also room for business growth for GYE.

“In light of the increasing demand for tourism-related business in the Southeast 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. It is necessary for GYE to have sufficient fund for its future business development and to meet its capital needs.”

Suncity Group had previously announced plans to open Hoiana during the current quarter, however with the recent impact on global travel as a result of the coronavirus and no confirmation of an opening date, such a timeline seems unlikely.