Suncity Group provides $34m Hoiana loan

Hong Kong based Suncity Group says the cash will assist with future business development and capital needs.

Hong Kong.- Suncity Group has delivered at US$34million loan to the company behind the HOIANA Integrated Resort to assist with future business development and capital needs. 

According to a statement delivered by Suncity to the Hong Kong Stock Exchange, the loan comes from Star Admiral Limited, an indirect subsidiary of SunCity, and Alpha Era Investments Limited.

Both companies hold a 50 per cent shareholding in Gold Yield Enterprises Limited (GYE), the main company behind the development of HOIANA IR. 

According to Suncity, the loan amount was determined after negotiations taking into consideration the capital needs of GYE for its business development in the project.

Under the loan agreement, interest applied to the loan is 1.5 per cent per annum, with a term of five years from the first drawdown date. GYE is expected to repay the principal amount and interest of the loan upon the expiry of the term. 

It is expected the loan will be withdrawn by GYE in around late March 2020.