BHG is 44.6 percent controlled by GP Investments (GPI or the Sponsor), the largest private equity firm in Brazil, which has a track record of investing approximately US$4 billion in 49 companies so far. GPI is listed in Novo Mercado and created BHG in 2008. All other shareholders in BHG are financial investors holding minority stakes below 8.5%.

The total Project cost is estimated at approximately US$585 million. To finance the Project, the Company intends to raise US$250 million equivalent in a follow-on public share issue at Novo Mercado, which is expected to be executed during April 2013 (the Follow On). IFC will become an investor in the intended Follow On with an up to US$25 million equivalent equity investment for its own account.

24.37 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	24.37

* These investment figures are indicative

BHG is headquartered in the city of Rio de Janeiro, Brazil and currently has 46 hotels across the country. Investment will be made along throughout Brazil.

- Increasing the supply of competitive price-value business rooms/hotels in first, second and third-tier cities with consistent international quality and safety standards; this should encourage increased tourism, business and MICE travel;
- Supporting the economic development of frontier regions of Brazil since a portion of the Project will take place in the Midwest, North and Northeast regions of Brazil, thus helping develop key business-enabling infrastructure in these priority areas;
- Creating both direct and indirect jobs as well as providing training and promotion opportunities; the Project is expected to create and 2,500 new direct jobs in the operation stage (and over 4,500 direct jobs during the construction phases), with approximately 45% being for women; indirect jobs along the supply chain are also expected to be significant, including in food supply, transportation, security and other needed services;
- Providing management and staff with comprehensive training opportunities, primarily through BHG''s own training center in São Paulo and through additional training centers planned in Rio de Janeiro and Belém; BHG will also continue its social program for convicted criminals by continue offering them in-house training and, in some cases, jobs to support their re-integration into society.
- Contributing to the development of the local economy by enhancing upstream and downstream supply linkages with SME vendors serving the needs of both the hotel and guests; in addition, the Project will increase tax revenues and tourist''s spending would help support a wide range of local economic activities;
- Adopting sustainable green-building design and construction, ensuring higher levels of energy efficiency; the upcoming new properties would meet IFC''s EDGE Green Building standard;
Improved environmental and social performance as BHG''s portfolio of hotels would conform to the World Bank Group''s environmental and social standards, including with regards to life and fire safety; and
- Providing a demonstration effect to other potential investors.

- Anchor Investor and Stamp of Approval: IFC''s provision of long-term equity financing is expected to enhance BHG''s profile and credibility, hence providing comfort to third-party investors for the Company''s Follow On;
- Green Building Expertise: IFC has provided the Company with guidance and support in analyzing its energy consumption and identifying areas for improvement on the Company''s proposed design for the first FIP greenfield hotel, which will effectively be used for all of the Company''s greenfield properties as a standardized template; through this exercise, the IFC team has determined that BHG''s new greenfield properties could be eligible for IFC''s EDGE Green Building certification, which would enhance the properties'' marketability and value; and
- Environmental and Social Standards: IFC will provide guidance in the implementation of the World Bank''s standards in environmental and social practices, including life and fire safety.

This is a Category B project according to IFC’s procedure for environmental and social review of projects because a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized management actions in accordance with IFC requirements.

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.