Kampala, Uganda, July 1, 2009
—IFC, a member of the World Bank Group, announced today that it will invest in Pine Investments to help the Ugandan property developer build and operate a new office building in downtown Kampala, reducing a shortage of quality office space that has slowed Uganda’s economic growth.
IFC’s investment will consist of a $2.5 million senior loan and a $2.5 million subordinated loan. Pine Investments will build a twin six-story structure with parking for 450 vehicles in Kampala’s central business district. Construction is scheduled to start in late 2009. IFC will also work with the company to implement international health and safety standards at the building, which will be called Rwenzori Towers.
“IFC’s support will help Pine Investments implement the highest international environmental, social, health, and safety standards at Rwenzori Towers,” said Henry Lubwama, Director at Pine Investments. “IFC’s long-term financing will help Pine Investments raise additional funds to help address the shortage of good business infrastructure in Kampala.”
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said, “A lack of long term financing for property development has been a constraint to economic growth in Uganda and across much of Sub-Saharan Africa. Providing high quality business infrastructure will help Uganda attract more investment and support the country’s economic growth.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments.Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
