The International Finance Corporation (IFC) has approved US$20.7 million in loan financing and US$14.6 million in equity investments for three projects with a total estimated cost of US$213 million in Morocco and Egypt. IFC is the member of the World Bank Group that promotes private sector investment in developing countries. To date, IFC has provided US$11 billion in financing to more than 1,000 companies in 100 developing countries. IFC to Finance Hotel Construction in Morocco The International Finance Corporation (IFC) is to provide FinanciËre Tourisme et Loisirs S.A. (FINATEL) of Morocco with financing of US$6.8 million, consisting of a loan of US$4.7 million and an equity investment of US$2.1 million. The project involves the construction and operation of a five-star 154-room hotel in the center of Marrakech. The total project cost is estimated at US$27 million. The hotel is to be operated and marketed by the resort hotels division of Accor, the foremost French hotel company. The project is promoted by Wa
fa Investment and Accor. Wafa Investment is the investment and venture capital affiliate of the Wafa group, Morocco's second largest private financial and industrial group.
Cairo Hotel to Receive IFC Financing
The International Finance Corporation (IFC) has approved financing of US$22.5 million, consisting of a US$6.5 million equity investment and a loan of US$16 million, for the International Company for Touristic Investments S.A.E. in the Arab Republic of Egypt. The project involves the construction and operation of a five-star hotel in the World Trade Center Complex in downtown Cairo. The hotel, which will be designed for business travelers, is expected to cost US$136 million and is scheduled to be completed in 1996. The sponsors of the project are the Arab International Bank, Conrad International Investment Corporation, World Trade Center Company, and Tourism Holding Company of Egypt. IFC to Invest in Egyptian Fund The International Finance Corporation (IFC) has approved an equity investment of US$6 million in the International Egyptian Investments Limited (IEIL) fund, which will be the first investment fund for Egypt to be placed with overseas investors. IFC has also agreed to take up to 15 percent of the shar
e capital of Horus Investments Ltd., the management company for the fund. IEIL, with US$30 million to US$50 million in capital, will focus on the expansion and diversification of existing companies in various industrial and commercial sub-sectors in Egypt. It will also invest selectively in companies to be privatized by the Egyptian government. "The fund is expected to take advantage of the opportunities being created in Egypt in the wake of strong measures recently taken by the government to deregulate the economy and encourage development of the private sector," said Mr. Khaleel Ahmed, the IFC investment officer responsible for the project. The other sponsors of the project are Schroder Asseily & Co. and Barclays Bank plc.
IFC PROVIDES FINANCING FOR TWO PROJECTS IN PAKISTAN
The International Finance Corporation (IFC) has approved US$6 million in loan financing and US$1.7 million in equity investments for two projects with a total cost of US$23.6 million in Pakistan. IFC is the member of the World Bank Group that promotes private sector investment in developing countries. To date, IFC has provided US$11 billion in financing to more than 1,000 companies in 100 developing countries. IFC to Finance Textile Factory The International Finance Corporation (IFC) is to provide Sarah Textiles with financing of US$7.48 million, consisting of a loan of US$6 million and an equity investment of US$1.48 million. The company plans to establish a new knitting, dyeing, and garment manufacturing facility to produce 1.5 million kilograms of fabric and 1.38 million knit shirts per year using local cotton yarn. The project will allow the company to respond to the growing demand from current customers by increasing production capacity, providing a broader selection of products, and undertaking yarn dye
ing. The total cost of the project is estimated at US$21.1 million. Pakistan is the world's third largest cotton grower. IFC to Invest in New Financial Institution The International Finance Corporation (IFC) has approved an equity investment of US$250,000 in the Central Security Depository of Pakistan (CSD), the first securities depository, custodial and settlement institution to be established in Pakistan. CSD will be the clearance and settlement center for nearly all equity transactions in the country and will act as the depository for fixed income securities. It is being jointly promoted by the Karachi Stock Exchange, which will hold 30 percent of the institution's stock, and Citibank, which will hold 20 percent. IFC will hold 10 percent and the remaining 40 percent will be subscribed by the other stock exchanges in Pakistan, as well as prominent local institutional players on the stock market.
