WASHINGTON, D.C., December 17, 1998 ---
The International Finance Corporation will make a substantial contribution to the expansion of Fiji's tourist industry with the investment of US$3.9 million in Fiji's Outrigger Reef Fiji Resort.
The US$23.2 million project, located one hour south of Nadi International Airport along Viti Levu's Coral Coast, will completely redevelop the existing 68-room Reef Resort into a 255-room, international standard four-star resort that appeals to the growing family-oriented market.
The project will promote economic development, foreign exchange earnings, and employment in the local Korotogo and Sigatoka areas of Fiji, said Mr. Jemal-ud-din Kassum, IFC Vice President of Investment Operations.
IFC's financing consists of a convertible subordinated loan of US$3.9 million for its own account. The European Investment Bank is also providing a convertible subordinated loan. Senior loans are being provided by the ANZ Bank and the Bank of Hawaii with guarantee support by the Export Finance and Insurance Corporation of Australia.
The sponsor is Hillview Limited, a joint venture between Coral Coast (Fiji) Limited (CCFL) and Outrigger Hotels & Resorts. CCFL owns and operates the existing Reef Resort as well as Castaway Island Resort, located in Fiji's Mamanuca Group of islands. CCFL will be the major shareholder in Hillview Limited. Outrigger Hotels & Resorts is a division of Hawaii-based Outrigger Enterprises, Inc. Outrigger operates more than 9,000 rooms in 27 hotels and resort condominiums in Hawaii, making it the largest hotel chain in the islands. It also has properties open or under development in Australia and the Pacific Islands.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
The South Pacific Project Facility (SPPF), based in Sydney, Australia, provided technical assistance to the project, prepared a feasibility study, and helped to assemble financing. SPPF, which is managed by IFC, was established in 1990 to provide assistance to entrepreneurs to evaluate and structure investment opportunities, prepare business plans, and obtain project financing. SPPF, which does not invest in projects, is funded by the Governments of Australia, Fiji, Japan, Kiribati, New Zealand, and Samoa, as well as by IFC.
