Silver Heritage Group, an Australian-based gaming operator, has announced through a filing on the Australian Securities Exchange, that additional funding for their Nepalese subsidiary, Tiger One, has been secured.
The additional funds will amount to NPR510mn ($5m) and will go the development of their new self managed Nepalese resort, the Tiger Palace Bhairahawa. The resort itself is sandwiched between two world heritage sites and aims to "transform the South Asian casino entertainment landscape".
Silver Heritage Group already owns two casinos in South East Asia located in Vietnam and Nepal. However, The Tiger Palace will be the first which is self-managed.
With regards to what specifically the funds would be used for, the companies Australian Securities Exchange report said: “prepay US$2.0m of the US$20m outstanding bonds, issued to Silver Heritage Ltd on 26 August, 2016, on or around 25 August, 2017”.
The casino operators also announced that Prime Commercial Bank would become the 4th banking syndicate to support the construction.
Silver Heritage Group added: “With immediate effect, the existing syndicated banking facility of NPR750m will be increased by NPR360m, before being added to the existing loan on completion of certain administrative procedures including re-mortgaging land at Tiger Palace Resorts Bhairahawa in favour of the extended syndicate”.
The bridge loans will be set at a 13% interest rate at quarterly disbursements. Already existing loans will also increase in interest from 10.5% to 12%. The dates of the payments shall remain the same as well as the total number of payments.
The Silver Heritage Group will be hoping that the news should settle nerves and assure people that they will begin opening their doors partially in September. The first phase will see over 100 rooms and two villas opening with the view of expanding to 400 in future phases.