Australian casino operator Silver Heritage Group Ltd. is injecting fresh funds into its multi-million dollar integrated resort in Nepal.
The construction delays of Tiger Palace Resort Bhairahawa, which is located just across the border from the Indian state of Uttar Pradesh, has prompted the Australian-listed firm to allot additional funds to the project for the second time this year.
This time, Silver Heritage said in a disclosure to the Australian Stock Exchange that the additional US$5 million, which was secured by its Nepalese subsidiary, Tiger One Pvt Ltd, will be used to “prepay US$2.0-million of the US$20-million outstanding bonds, issued to Silver Heritage Ltd on 26 August 2016, on or around 25 August 2017.”
“Being the next interest payment date of the Bonds, the Company will redeem US$2 million of Bonds at the Redemption Price of US$2,134,000.”
Silver Heritage originally planned to open its Tiger Palace in February but a shortage of liquidity in Nepal’s banking system and unanticipated delays in getting approval to increase the equity ceiling of its Nepal corporate investment vehicle pushed the opening date of the integrated resort to August.
But on Monday, Silver heritage announced the good news that a fourth bank, Prime Commercial Bank Ltd, has been added to the banking syndicate supporting the construction of the Nepal gaming venue.
“The existing syndicated banking facility of NPR 750 million (approximately US$7.4 million) will be increased by NPR 360 million (approximately US$3.5 million) to a total of NPR 1,110 million (approximately US$10.9 million),” the company said.
According to Silver Heritage, the NPR 360 million will be used as a bridging loan “before being added to the existing loan on completion of certain administrative procedures, including re-mortgaging land at Tiger Palace Resorts Bhairahawa.”
Last month, Silver Heritage announced that its June entitlement offer had raised AUD19 million, which it said was sufficient to complete Tiger Palace ahead of the resort’s new targeted partial opening of the property in September.
Tiger Palace’s hotel, villas and hospitality areas will open next month but the property’s VIP gaming areas and main gaming floor won’t be completed until November.