PALMA GUINEE S.A.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Palma Guinée S.A. is developing a 5-star 280-room business hotel on a prime seafront location in Conakry, Guinea. The hotel will be operated by Starwood Hotels & Resorts Worldwide Inc., under the Sheraton brand. Palma is fully owned by the Topaz Group of companies, an international trading and manufacturing group controlled by the Vaswanis, a family of successful entrepreneurs operating across the globe, with a strong foothold in Guinea.
What is our funding objective?
FMO is financing the development of the Palma hotel through a joint transaction with IFC, the arranger of the debt package. Guinea is one of the poorest countries in the world and has transitioned to civilian rule after a long period of social unrest and military rule. Demand for quality hotel accommodation has increased in past years, fuelled by political stabilization, re-admittance to the international community, economic growth driven by the mining sector and improved access by air. The hotel will help improve the business infrastructure in Conakry and the opening up of Guinea as a travel destination for business, conferences and tourism.
Why do we fund this investment?
The project has high development impact, as it will support greater travel to Conakry and thus contribute to the development of the city and the generation of hard currency income. The hotel is expected to facilitate transfer of best practices, such as hotel management, implementation of environmental and social standards, good business ethics and transparency and integrity in dealing with employees and other stakeholders. The hotel will generate approximately 400 direct jobs as well as indirect employment in the supply chain, and will have linkages with the local economy through the supply of food products and procurement of services. It may also encourage foreign direct investment activity in Guinea and help diversify the economy. In addition to this, Palma is considered a Greenfield energy efficiency project because of its highly efficient architectural design, which allows for reduced energy consumption for heating and air conditioning, and compliance with high energy efficiency certification or rating schemes.
- Website customer/investment
- http://www.ifc.org
- Region
- Africa
- Country
- Guinea
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 4/17/2014
- End date
- 12/27/2022
- Total FMO financing
- USD 11.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+