WEDNESDAY, 07 JULY 2010 BY BUKKY OLAJIDE     

 

International Finance Corporation (IFC), a member of the World Bank Group, has announced a fresh investment of $12.1 million (N1.8 billion) in two Nigerian companies- Skye CAPIC and CAPIC Hexagon, to develop two hotels in the country.

 

Specifically, IFC will provide  $6.6 [N990million] to Skye CAPIC, a joint venture between Capital Alliance Property Investment (CAPIC) and Skye Bank. Skye CAPIC will use the fund to build a three-star, 125-room hotel in Ikeja, Lagos.IFC will also advance $5.5 (N825 million) to CAPIC Hexagon, a joint venture between Capital Alliance Property Investment and Hexagon Networks, a private local company. CAPIC Hexagon will use the fund to build a three-star, 102-room hotel in Benin City, Edo State.

 

Both hotels will be managed by Protea International, the largest hotel operator in Africa.Fund Manager of Capital Alliance Property Investment Company, Obi Nwogugu, said: “Partnering with IFC will enable CAPIC to enter Nigeria’s hospitality industry, an important sector as Nigeria’s growing economy attracts more business travelers. CAPIC looks forward to a successful partnership with IFC to help meet the needs of Nigeria’s economy.”

 

Skye Bank’s Executive Director (Investment Banking), Timothy Oguntayo, stressed that “Skye Bank has always been known for its strong bias for project finance. We delight in contributing to the development of the real sector of the economy. We have financed various hotels operating under the brand names of Protea, Intercontinental and Merridien Groups. It gives us great pleasure to work with CAPIC and IFC on this project.’’

 

Managing Director of Hexagon Networks, Omoregbe Erediauwa, explained that  “partnering with IFC and CAPIC will strengthen Hexagon Network’s drive towards being a leader in the Nigerian entertainment and hospitality industry. We look forward to a successful partnership.”IFC’s investments will provide both companies with long-term capital, which has become increasingly unavailable and expensive in the country, as many financial institutions have cut back their lending due to recent global financial crisis.

 

IFC Country Manager for Nigeria, Solomon Adegbie-Quaynor pointed out that “IFC is committed to investing in a broad range of industries to meet the demands of Nigeria’s growing economy.“Through this partnership, CAPIC and IFC will address an important need for affordable, quality business infrastructure in Nigeria while helping to create jobs in the hotel industry and boosting economic growth.”

 

(Source:Guardian)