Universal II

completed

In 2003, in an attempt to replicate the success of the Maldives’ tourism industry, the Seychelles government invited Maldivian hospitality companies, including the sponsors of the Universal Enterprises Pvt Ltd (“UEPL”, or “Universal”), the Maniku family, to invest in the country (which faces similar geographical and infrastructural limitations). Consequently, the 111-room Labriz Silhouette Island Resort (“Labriz”, the “Project”) was developed and commenced operations in late 2006. Belonging to the collection of the 480 Small Luxury Hotels of the World, Labriz is positioned as an affordable luxury resort that blends elegant hospitality with the Seychelles’ tropical rainforest environment and is currently the largest five-star resort in the Seychelles. Labriz has 325 employees, 135 of which are local. In 2005, IFC committed a $30 million A loan to three companies within the UEPL group of companies in the Maldives, under IFC’s $150 million Tsunami Tourism Loan Facility. IFC’s A loan was used to partially fund: (i) the reconstruction and refurbishment of two of Universal’s properties that were damaged during the tsunami; (ii) the refinancing of certain existing overdraft facilities for recently renovated properties in anticipation of the downturn in the tourism market as a result of the tsunami; and (iii) the development of one new property.