NHGPL is privately held company, 100% owned by the family members of MS Group. Ms Group is not registered as a company but is only registered as a trademark. The main sponsors are Mr. Sumit Kumar Agarwal (50%) and Mr. Umang Agarwal (50%) (collectively the “Sponsors”). Both are highly reputed businessmen of Nepal.

The total Project cost is approximately US$12 million. The Project is proposed to be financed with a debt-to-equity ratio of 50:50 as follows: long-term debt of US$6 million and shareholders’ equity of US$6 million. The proposed IFC investment is a US$3 million A loan for IFC’s own account.

3.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	3.0
Equity

* These investment figures are indicative

The Project involves development of a greenfield 110 room hotel property in Kathmundu, Nepal. The project site, totaling 1,357 square meters, is located in Thamel, Kathmundu, Nepal. The project site is a preferred destination for international tourists, with good access to transportation routes.

The Project''s development impact will include:
- Direct Job Creation: The Project will create approx. 80 new direct jobs, as well as temporary jobs during construction. Number of female jobs are expected to be in the range of 10%. Given that the hotel will be operated by a world-class hotel operator, the Project will help enhance local workers'' skill-sets.
- Indirect Job Creation and Local Supply Chain Linkages: As in all hotel projects a significant number of indirect jobs are expected to be created. The Project will generate incremental business and indirect jobs for domestic Micro, Small and Medium Enterprises (MSMEs) in the value chain, construction supply and services during implementation including transportation, tour guides, F&B suppliers and other service providers.
- Bridging Gap in the Tourism Sector: Fairfield Kathmandu would be the first internationally branded and professionally managed hotel in Nepal focusing on middle income travelers. This particular segment would be more interested for leisure travel to Nepal because of quality infrastructure and service.
- Technology Transfer: NHGPL intends to adopt global best practices in terms of green building construction, efficient hotel operations, worker productivity and energy efficiency, which would set an important example and potentially elevate productivity and efficiency standards of the overall industry.
- Benefit to the Government: The Project will generate tax revenues for the Government of Nepal.

- IFC will provide long-term financing in difficult market conditions lacking long-term liquidity to support a leading conglomerate to enter in the hospitality segment.
- IFC will assist NHGPL to formulate and implement E&S action plan to introduce social/labor management systems for inclusion of E&S and OHS guidelines and enhance OHS management systems.
- IFC''s A Loan will give a stamp of approval to the Company, thereby signaling to other potential investors to invest in the sector.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Hotels: Number of Hotel Rooms Built/Refurbished (#)	Rooms (#)		Not Available	Not Available	Not Available

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

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.