The majority owner with a controlling interest in the Borrowers is CAPIC. IFC participated in the second closing of CAPIC and committed US$10 million for a 9.3% stake in the fund. CAPIC’s management team has extensive financial, property and development experience. Co-Sponsors: Both co-sponsors have contributed the land to the Project. They will support their shareholding with cash contributions through to Project completion. Skye Bank PLC is a public Nigerian company listed on the Lagos exchange. Skye has 250 branches and transaction centers, 6000 professional staff and a N1 Trillion (US$7 billion) balance sheet size. Hexagon Networks PLC is owned by Omoregbe Erediauwa, a Benin City based entrepreneur and investor.

Protea Ikeja: The total project cost for Protea Ikeja is $18.16 million and the breakdown is as follows: Land - $1.80 million, Hard Costs - $12.50 million, Soft Costs -$1.98 million, Pre operating expenses - $0.30 million, and Financing Cost - $1.58 million. Protea Benin: The total project cost for Protea Benin is $13.40 million and the breakdown is as follows: Land - $0.95 million, Hard Costs - $9.65 million, Soft Costs -$1.62 million, Pre operating expenses - $0.30 million, and Financing Cost - $0.88 million.

12.20 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.20
Equity

* These investment figures are indicative

The two hotels will be located in the urban areas of Lagos and Benin City where land ownership is well defined and title deeds are available. The site for the hotel in Lagos is owned by Skye Bank PLC and has been transferred to the Special Purpose Vehicle (SPV), Skye Capic Limited. The site is currently being used by Skye Bank as vehicle parking space for staff as well as storage for the bank’s various materials. It is secured by a wall, which has prevented irregular occupation. The hotel in Benin City will be established on a site previously utilized for similar purposes i.e., the Emotan Hotel, which reportedly ceased operations in 2002. Existing structures on this site will be demolished to accommodate the new CAPIC Hexagon Limited hotel. In both instances land purchases are on a willing seller/willing buyer basis; thus PS5: Land Acquisition and Involuntary Resettlement does not apply. Equally PS6: Biodiversity Conservation & Sustainable Natural Resource Management is not applicable.

(i) Absorb the demand for quality hotels of international standards in a major business district of Lagos and the heretofore undeveloped market of Benin city. (ii) Improve hotel standards in the 3 star segment. (iii) Encourage the transfer of skills and expertise in hotel management to the local workforce. (iv) Generate direct and indirect employment opportunities for locals during construction and during operations. (v) Provide sources of revenues for the government through the collection of taxes.

(i) IFC will provide the needed long term financing for the project which is currently unavailable in the market. (ii) IFC’s participation will ensure that the Company adheres to IFC’s environmental, Health, Safety and Social standards. (iii) Support a strong local sponsor in the expansion of a well-regarded brand in Nigeria’s underserved city centers.

The EHSS impacts of the Sponsor’s operations are relatively limited. IFC’s review did not identify any significant adverse impacts or high risk exposures. Issues to address include:

improvements in EHSS management systems,
occupational health and safety, particularly during construction,
waste water management and sewage treatment, and
life and fire safety issues

These matters can all be addressed using standard mitigation methods and procedures. Based on these considerations, this is a Category B project according to IFC’s Environmental & Social Review Procedure.


While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts that must be managed in a manner consistent with the following Performance Standards:

PS1: Social and Environmental Assessment & Management Systems
PS2: Labor and Working Conditions
PS3: Pollution Prevention and Abatement
PS4: Community Health, Safety and Security