SUNTRUST Home Developers, Inc. is issuing P5.6 billion convertible bonds to be subscribed to by a Hong Kong-based company in relation to its construction of a hotel casino in Parañaque City.
In a disclosure to the local exchange on Tuesday, Suntrust said it had signed a subscription agreement with Hong Kong’s Summit Ascent Investments Ltd. earlier this week.
The deal requires Suntrust to issue P5.6 billion, 6% coupon convertible bonds that Summit Ascent will subscribe to under certain conditions. It said the move would support the development of the five-star hotel casino that Suntrust is building at the Manila Bayshore Integrated City in Parañaque City.
In Summit Ascent’s disclosure to the Hong Kong Stock Exchange, the company said the convertible bonds to be issued by Suntrust may be converted into conversion shares.
Net proceeds from the issuance is estimated at HK$1.6 billion, which Summit Ascent will use for the development of Tigre de Cristal, a hotel and resort in Russia.
Suntrust is 51%-owned by Fortune Noble Ltd., a wholly owned subsidiary of Hong Kong-based Suncity Group Holdings Ltd.
Suncity is a substantial shareholder of Summit Ascent through its parent company, Summit Ascent Holdings Ltd., where Suncity holds approximately 24.74% interest.
The hotel casino that Suntrust is building with Westside City Resorts World, Inc. will stand as part of Megaworld Corp.’s Westside City in Parañaque City. It is envisioned to have at least 400 rooms and a casino.
Shares in Suntrust at the Philippine Stock Exchange picked up 12 centavos or 10.43% to P1.27 each on Tuesday. — Denise A. Valdez