|
| Description of company and purpose of project |
| The Industrial Union of Donbass (ISD) is seeking IFC support to help finance CJSC Sofia Kiev (or the company), a 235-room hotel in central Kiev. The hotel is expected to be operated by Hyatt International under the Hyatt Regency brand name. |
|
| Project sponsor and major shareholders of project company |
| The project sponsor is the ISD, a privately owned major Ukrainian diversified group, founded in 1995. The group’s main activity is the production and trade of metals (steel). |
|
| Total project cost and proposed IFC investment |
| The total project cost is estimated at approximately $50 million. The proposed IFC investment is up to a $14.5 million A loan and up to a $13 million syndicated B loan. |
|
| Location of project and description of site |
| The project will be based in Kiev, Ukraine. |
|
| Project Development Impact and IFC's Role |
The project would have a strong developmental impact in Ukraine’s hotel sector by achieving the following:
- Upgrading business practices:
It will have a positive effect on the sector by transferring Hyatt’s hotel management methods and service industry best practices, including applying best practice environmental standards. Consumers will benefit from the superior service.
- Increased employment:
The project will create over 500 direct jobs and additional indirect jobs through vendor contracts. In addition, temporary employment will be provided to local labor during the construction phase of the project.
- Taxes:
The project will generate significant income, value added, room taxes and F&B taxes.
- Fostering competition:
By promoting high quality standards at competitive rates, the project will put price and quality pressure on local hoteliers, ultimately benefiting end-users (guests).
- Demonstration effect:
The project would encourage other companies pursuing investment opportunities in Ukraine as the country's perceived risk begins to diminish.
IFC role in the proposed project is as follows:
- Support the development of business infrastructure in the country.
- Enable the company to finance its long-term investment by supplying long-term funds.
- Mobilize additional financing through a B loan syndication.
- Play a role as honest broker between the company and the hotel operator. |
|
| Environmental and social issues - Category B |
This is a category B project according to IFC's Environmental and Social Review Procedure. Environmental, social and health and safety issues associated with the project include site locations, previous land use and potential land acquisition issues (e.g. economic or physical displacement), environmental managements systems, life and fire safety and wastewater and solid waste management.
To view the environmental documents for this project, click here |
|
| Location of environmental documents in locally affected community |
The environmental documentation will be made available at the following address:
Travel Agency SAM
40-b, I. Franko Street
Kiev
Ukraine 01030 |
|
| To contact the project company, please write to: |
Contact person:
Tetyana Dukhanina (General Director) /
Valentine Smirnyagin (Deputy General Director of Finance)
CJSC Sofia Kiev
40-b, I. Franko Street
Kiev
Ukraine 01030 |
|