The Magna Holdings International Limited group (MHIL) achieved financial close, on October 19th 2007, on a USD 16 million seven-year Project Finance Facility for the Al Waddan Hotel in Tripoli, Libya. The hotel is held in a Special Purpose Vehicle (SPV) and is in joint venture with the Economic Social and Development Fund (ESDF), a Libyan investment government-backed fund.
The Facility was arranged by the Mandated Lead Arrangers ABC International Bank plc (ABCIB) and Standard Bank Plc. ABC International Bank plc is also the Facility Agent and the Offshore Security Trustee. Gumouriya Bank acts as Libyan Security Agent.
The Al Waddan Hotel financing is the first international project finance transaction to achieve financial close in Libya
Project Description
The Al Waddan Hotel project consists of the renovation and expansion of the Al Waddan Hotel in Central Tripoli. Originally built in the 1930s, Al Waddan is the oldest and most distinguished hotel in Libya.
The redevelopment of the hotel as a luxury boutique hotel provides for an increase in capacity from 70 to 90 bedrooms (including nine suites), renovation of all facilities, expansion of the food and beverage services to offer a fine dining restaurant, a lounge, a coffee shop and poolside café, development of a business centre and extensive conference and banqueting facilities, and finally, construction of quality spa and health club including a swimming pool, treatment rooms and full gymnasium facility.
MHIL, the project sponsor, was established in 2004 to pursue investment and development opportunities in Libya. Al Waddan Hotel will be managed the by InterContinental Hotels Group (IHG).
London-headquartered ABCIB was established in 1991 as a wholly-owned UK subsidiary of Bahrain-based Arab Banking Corporation (ABC).
Its core business comprises trade and commodity finance, project, export and structured finance, Islamic asset management and treasury services. ABCIB has branches in Paris, Frankfurt and Milan, marketing offices in Rossendale (in the North of England) and Stockholm, and representative offices in Istanbul and Madrid.
The principal shareholders of parent group ABC are the Kuwait Investment Authority, the Central Bank of Libya and the Abu Dhabi Investment Authority. The ABC Group, listed on the Bahrain stock exchange, is a leading bank in the Middle East and North Africa and operates as an offshore commercial bank.
ABC provides a full range of retail and commercial banking, corporate finance, discretionary fund management, foreign exchange, derivatives, Islamic banking and financial advisory services in the markets in which it offers those services.