The main sponsor and shareholder of Thien Minh is its Founder and Chairman Mr. TRAN Trong Kien who holds 70.8% of the Company’s shares. Mr. Tran started the Company with his family in 1994 as an inbound tour operator. The second largest shareholder of Thien Minh is Vietnam Investments Group (“VI Group’), a private equity firm headquartered in Ho Chi Minh City, Vietnam which holds 29.2% of Thien Minh. VI Group is an IFC portfolio private equity fund that targets investments in high growth companies in Vietnam. The fund provides Thien Minh support on strategy, financial structuring and funding and is acting as financial advisor to Thien Minh on this transaction.

Total project cost is estimated at approximately $38 million. The proposed IFC investment is a $12 million C loan for IFC’s own account. Up to $3.5 million of IFC’s C loan is proposed to be convertible into common shares of the Company.

12.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.0
Equity

* These investment figures are indicative

The Company’s headquarters are located in Hanoi and the Company’s existing hotel operations are located in Mai Chau and Hue City. The Foreign Group owns and operates several four-star boutique hotel-resorts in Vietnam and in Cambodia and a hotel management company.

The Project is expected to have significant development impact as described below: i) Income and Foreign Exchange Revenue: The Project will generate benefits to the Vietnamese government including tax revenue and foreign exchange inflow, particularly as a significant portion of the hotel guests are foreign nationals and the majority of hotel revenues are paid in foreign currency. ii) Employment: The Project provides permanent employment opportunities in hotel management, of which a significant portion are to local staff including a number of female employees. iii) Staff Training/Knowledge Transfer: The Foreign Group will continue to provide hotel management training to its own local staff and will also provide cross-fertilization of knowledge transfer via staff training to other lower-tier hotel properties owned by the Thien Minh Group. iv) Purchases from Local Suppliers: The successful implementation of the Project will also ensure continued and increased local supply purchases (food and beverage, supplies and other local services rendered during hotel operations). v) Environmental and Social Management System: The Project, through IFC's support to put in place an appropriate environmental and social management system, will help to ensure implementation of proper World Bank Group life, fire and safety procedures at all of Thien Minh Group's hotel properties.

i) IFC's Stamp of Approval: IFC's involvement will positively influence the general market perception of Thien Minh Group as it seeks a local IPO and particularly as the Sponsor further expands its operations regionally. ii) Improved Environmental and Social Management: IFC's involvement will bring about improvements in the implementation of life, fire and safety best practices to be in line with WBG standards. This is particularly of value add to the Sponsor's lower-tier hotel properties. iii) Industry Expertise: IFC can provide hotel industry expertise based on our long history of hotel investments; in addition, IFC's destination-specific knowledge will also be of added value as Thien Minh Group expands into new destinations. iv) Provision of Long Term US$ / Euro Acquisition Financing: IFC is able to provide long term financing in US$ / Euro to help facilitate the acquisition of local assets by a local Vietnamese sponsor from a foreign owner. v) Provision of Insurance Expertise: IFC's involvement will encourage the Company to improve its insurance coverage to IFC recommended levels.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific and reversible environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental, health and safety, human resources and social issues that were reviewed included the following: environmental and social management system; emissions to the environment – air, water and subsurface; hazardous waste and materials management; life and fire safety and emergency preparedness and response; community and occupational health and safety; water and energy use and efficiency; and community engagement.