Project detail - TSEMEX HOTELS AND BUSINESS PLC

Who is our customer

Tsemex Hotel and Business Plc (THB) is developing a 210-room business hotel on a prime location in Addis Ababa, Ethiopia. The hotel will be operated by the Intercontinental Hotel Group under the Crown Plaza brand. The project will service a vast gap in the Addis Ababa hotel supply, thus enabling an increase in business travelers to Ethiopia. THB will be 98% owned by Tsemex Global Enterprise Plc, which is a leading player in promoting access to drinkable water in Ethiopia.

What is our funding objective?

FMO is investing US$38 million in a debt package arranged by the International Finance Corporation. The financing will be used for the construction of the THB hotel. Ethiopia is establishing itself as the center of diplomatic Africa. This is shown in the large presence of international organizations and embassies, as well as the increasing demand for conference locations in the last few years. However, the supply of hotel accommodation has increased only little, therewith resulting in a shortage of quality hotel rooms. By financing THB, FMO aims to improve the business infrastructure and allow the development of both business and political activity in Ethiopia.

Why do we fund this investment?

The project will create development impact by accommodating an increasing flow of business travelers, who in turn spur on the development of the country as well as the generation of hard currency income. The hotel will also employ over 300 local employees during operations and build strong economic linkages to the local economy by locally souring the majority of its products and services. Finally, THB is considered a Greenfield energy efficiency project as the efficient architectural design exceeds available standards and complies with high energy efficiency certification or rating schemes.