IFC, a member of the World Bank Group, is set to provide up to US $20.5 million in loans to Credence Hospitality Developments.
The loans will be used in an effort to support Egypt’s tourism sector with a boost to job creation and economic growth.
The financing will specifically support Credence’s efforts to expand and refurbish an existing 950-room beach hotel in the Red Sea resort town of Hurghada.
Credence plans to add 378 rooms to the development. The financing, which will be committed as two consecutive loans, will also support the construction of three hotels in the Cairo catering to extended-stay corporate travellers.
“This investment will help us provide world-class accommodations to foreign and local visitors, supporting the recovery of the vital tourism sector,” said Islam Mahdy, Credence CEO. “It will also support our efforts to push the bounds of green building in Egypt.”
Tourism accounts for 15% of Egypt’s gross domestic product and employs 11% of workers.
Between fiscal years 2011 and 2015, IFC’s investments in Egypt were just shy of $1.2 billion, including mobilisation.
Those investments covered 18 projects across the financial market, infrastructure, oil and gas, agribusiness, manufacturing, and health care sectors.