Suncity Group Holdings on Tuesday announced it will be providing further financial assistance to Gold Yield Enterprises (GYE), the majority owner of the Hoiana integrated resort in Vietnam.
The advance will be used by GYE for the purpose of investment and development of the project, which Suncity said has strong growth potential.
“It is necessary for GYE to have sufficient funds for its future business development and to meet its capital needs. With the growth potentials of the Project, the Board considers that the Loan Agreement and the terms thereof are fair and reasonable and in the interests of the Company and its Shareholders as a whole.”
Suncity Group, through its subsidiary Star Admiral, is a 50 percent shareholder of GYE. the other 50 percent is owned by Alpha Era.
Under the terms of the transaction, Star Admiral will advance a loan of US$17 million to GYE. Alpha Era will also match the same amount – bringing the total loan injection to around US$34 million.