The Project Sponsor is the Topaz group of companies (“Topaz”). Topaz is an international group fully controlled by the Vaswanis, a family of prominent entrepreneurs. The main business of the group main business is international wholesale trade of a variety of goods of everyday consumption. In addition, the Group produces plastic extrusion products in Guinea being one of the country’s few manufacturers. Present in Guinea for approximately 25 years, the Group strived through periods of instability and has grown into Guinea’s most important foreign investor in Guinea outside the mining sector.

The total Project cost is estimated at US$61 million. The proposed IFC investment is a secured senior loan package of up to US$26 million to Palma Guinea. The loan package is expected to comprise: (i) an A loan for IFC’s own account of up to US$15 million and (ii) a syndicated B loan of up to US$11 million.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The Project hotel will be located on a seafront greenfield site in Kipe, a district of Conakry, Guinea’s capital. The site of the future hotel is adjacent to residential and business areas and has a convenient access to the city’s major transport arteries.

Business infrastructure development/Opening of Conakry as a travel destination: The Project will support the development of a high-standard hotel, which will help Guinea''s capital city address growing demand for quality hotel accommodation driven by increasing business travel and the emerging conference activities sector. Furthermore, the availability of a high-quality hotel is expected to become a driver for more travel (both business and conference) to Conakry in its own right, contributing to the development of the city into a regional center.

Best practice transfer: The Project is expected to support transfer of best international business practices to Guinea, especially in such areas as (i) real estate development; (ii) hotel management; (iii) management of environmental, social life and fire safety issues; (iv) business ethics, transparency and integrity in dealing with employees, business partners, authorities and other stakeholders.

Employment generation: The investment will create significant local direct employment of about 400 and indirect employment in the supply value chain.

Linkages to the local economy: The Project hotel will seek to establish linkages with the local economy, specifically in such areas, as the supply of food products and the procurement of services (e.g. transportation).

Encouragement of investment activity in Guinea/Demonstration effect: The Project will have a demonstration effect by encouraging other international and regional players to pursue investment opportunities in Guinea as this IDA post-conflict country works to improve the business climate, facilitate greater foreign direct investment inflows and diversify its economy from the natural resource-based sectors.

Provision of long-term financing/Mobilization: IFC will provide and mobilize a loan package of the size, tenor and repayment profile that are not readily available in the region. This will enable Topaz to proceed timely with its investment project, as well as to ensure a stable financial performance of the Project hotel during the operational stage. In addition, IFC''s knowledge of the tourism sector is important in assessing the feasibility and structuring this investment. and will help ensure that the related risks are properly mitigated.

Environmental and social (E&S) performance: IFC''s E&S expertise will ensure that the Project is implemented based on the highest relevant E&S standards. In addition, IFC has been providing to the Sponsor with advice in the energy efficiency/ green building areas.

South-South investment: IFC''s investment will support a South-South expansion of a successful business group originating from and focused on emerging market countries in Guinea, a post-conflict IDA country.

Projects of this nature have issues related to E&S assessment and management, labor and working conditions, resource efficiency and pollution prevention, community health, safety and security. This proposed investment is an E&S Category B project according to IFC’s Policy on Environmental and Social Sustainability, because potential adverse environmental or social risks and/or impacts are limited, few in numbers, site-specific, largely reversible and readily addressed through mitigating measures.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.