WASHINGTON, D.C., June 30 -- The International Finance Corporation (IFC) has approved US$26 million in financing for the Hanoi Sofitel Metropole Hotel, Hanoi's only international-standard hotel. This is IFC's first investment in Viet Nam. IFC's financing consists of a loan of US$5 million for its own account, a subordinated loan of US$3.5 million, and a syndicated loan of US$17.5 million. Banque Indosuez of France, which operates a branch in Viet Nam and arranged financing for the Metropole's 1990 renovation, acted as co-arranger of the present financing with IFC and as lead manager of the syndicated loan. IFC joined with Nederlandese Financierings - Maatschappij Voor Ontwikkelingslanden N.V. (FMO), and ElysÈe Investissement in providing the subordinated loan. The financing package will enable the hotel to implement a US$35 million expansion program to help meet the demand created by increased business travel and tourism to Viet Nam. The Metropole will add shops, meeting rooms, restaurants, office space, and
guest rooms to its facilities. The Metropole hotel is owned by SociÈtÈ d'Economie Mixte Thong Nhat Metropole, a joint venture between Vietnamese state-owned entities and foreign investors. The foreign sponsors are ElysÈe General Oriental Investments B.V., an international investment and property group; the French company, Accor, one of the world's largest hotel and leisure groups; and Feal International, a French company specializing in hotel construction and renovation. The local sponsors are Hanoi Tourist, the state entity responsible for organizing Hanoi's travel industry; and Unimex Hanoi, a state-owned export-import company. IFC has advised the Vietnamese authorities on the development of financial markets, including the establishment of securities markets and a leasing industry, and project-specific work. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
