WASHINGTON, D.C., December 23, 1999 —
The International Finance Corporation is providing financing of up to US$10 million to Reval Hotel Group, an Estonian hotel management company to support its expansion and strategic development.
Reval Hotel Group is a leading hotel operator in Tallinn, with four hotels under management. The first phase of the project which will receive additional financing from Hansabank focuses on strengthening Reval's position in the Tallinn hotel market by widening its range of products and consolidating the ownership of the main hotels currently under Reval's management into the Group's corporate structure. In a second phase, Reval will expand operations into neighboring capitals, such as Riga and Vilnius.
IFC has been active in Estonia since 1993, supporting sound investments that have a strong development impact in industries with high growth potential, as well as export-oriented projects in sectors where Estonia has a comparative advantage. Previous IFC investments in the country include companies in construction materials, timber industry, paper industry, electronics, hotels, leasing, and banking.
The mission of IFC, part of the World Bank Group, is to promote private sector investment in developing countries, which will reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
