WASHINGTON, D.C., December 23, 1999 —
The International Finance Corporation is providing financing of up to US$10
million to Reval Hotel Group, an Estonian hotel management company to support
its expansion and strategic development.
Reval Hotel Group is a leading hotel operator in Tallinn, with four hotels
under management. The first phase of the project which will receive additional
financing from Hansabank focuses on strengthening Reval's position in the
Tallinn hotel market by widening its range of products and consolidating
the ownership of the main hotels currently under Reval's management into
the Group's corporate structure. In a second phase, Reval will expand operations
into neighboring capitals, such as Riga and Vilnius.
IFC has been active in Estonia since 1993, supporting sound investments
that have a strong development impact in industries with high growth potential,
as well as export-oriented projects in sectors where Estonia has a comparative
advantage. Previous IFC investments in the country include companies in
construction materials, timber industry, paper industry, electronics, hotels,
leasing, and banking.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.