Tsunami Tourism Loan Facility

completed

The proposed $150 million project is to establish a Tourism Loan Facility which will provide IFC with a flexible platform from which to support promptly and efficiently tourism companies severely affected by the recent tsunami disaster in South-East Asia. The Facility will be utilized for financing the following components: - the reconstruction/rehabilitation of tourism properties damaged by the tsunamis; - the increased working capital requirements of tourism companies due to slowdown in demand in the region; - the acquisition, by long-term strategic investors, of hotels and other lodging properties that have suffered damages and face uncertain market prospects as a result of the tsunamis; and - the debt restructuring of tourism companies facing financial difficulties due to damaged property and/or slow-down in demand. The Facility will assist established hotel companies in the tourism sector in Thailand, Sri Lanka, Maldives, and Indonesia, who thanks to their distinctive brands, ability to develop attractive properties and well-established relationships with tour operators, will be important in restoring confidence and bringing tourism back to the affected destinations. It is anticipated that the proposed Facility will enable IFC to support a number of companies (the “Sub-projects”) in the Maldives, Sri Lanka, Thailand and other affected countries, and thus ensure diversification of the portfolio. Full utilization of the proposed Facility is anticipated within one year.