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IFC TO INVEST IN NIGERIAN HOTEL


Asimina Caminis


WASHINGTON, DC, October 12, 1993 -- The International Finance Corporation (IFC) will provide a US$17.5 million financial package to Tourist Company of Nigeria Ltd., to help the company refurbish the 400-room Federal Palace Hotel and Suites to a 4/5-star international standard. The total cost of the refurbishment is estimated at US$68.5 million. IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector projects in developing countries. IFC is providing a US$11 million term loan and has mobilized an additional loan of US$5.4 million equivalent from the Finance Company for Developing Countries (FMO) of the Netherlands. IFC will also be providing US$4.0 million in quasi-equity and US$2.5 million in equity for the project. The balance of the funding is expected to come from the sponsors, Ikeja Hotels Plc. and local banks. The renovated Federal Palace Hotel and Suites will provide the downtown business district of Lagos with business-class rooms and conference facilit
ies and significantly alleviate the shortage of business-class accommodations in Lagos, Nigeria's commercial capital. The hotel construction program is being managed by Bovis International. Sheraton Management Corporation (SMC) will be the hotel operator.

Tourist Company of Nigeria