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Male, Maldives, November 19, 2003
—The International Finance Corporation, the private sector arm of the World Bank Group, will provide financing amounting to $17 million to Taj Maldives Private Limited (TMPL) a local hotel company, to refinance the company’s short- and medium-term debt.
TMPL operates two properties in the Maldives, Taj Exotica Resort and Taj Coral Reef Resort, and is affiliated with the Taj Group, one of India’s leading hotel chains. IFC’s participation was critical in completing the long-term financing, which is not readily available in the Maldives. The loan includes $8.5 million for IFC’s own account and an $8.5 million participation by Raiffeisen Zentralbank Österreich AG (RZB) of Austria. This is the first IFC B-loan syndication for the Maldives.
“IFC is very pleased to be associated with this initiative, which will help support the growing Maldives tourism industry,” said Mr. Dimitris Tsitsiragos, IFC director for South Asia.
Mr. Zubin Dubash, executive director of the Indian Hotels Company Limited, added, “We are delighted to conclude this deal with IFC. We are sure this will be the start of a long and fruitful relationship. The transaction helped us conclude long-term financing to improve and maintain a world-class facility.”
Tourism expanded rapidly in the 1990s and is now the largest industry in the Maldives, accounting for an estimated 33 percent of GDP and 30 percent of local employment. Over half a million tourists visit the islands annually, outnumbering the local population and supporting the local economy. The Maldives is a good example of how a country can reap the benefits of its natural advantages through well-managed, environmentally friendly tourism development.
IFC's mission (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
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