Praia, Cabo Verde, December 28, 2023 – To support jobs and economic growth in Cabo Verde, IFC today announced a financing package for Oásis Atlântico, a leading hotel group in the archipelago, which will strengthen the country's important tourism sector.
The IFC-arranged financing package of up to €35.5 million will provide liquidity to three hotel companies owned by Oásis Atlântico in Cabo Verde, supporting employment and supply chains as the country's tourism industry rebounds from the impact of the COVID-19 pandemic.
The financing package includes a loan of up to €10.5 million from IFC's own account, a concessional loan of up to €10.5 million equivalent in USD from IFC in its capacity as implementing entity of the Blended Finance Facility (BFF) of the International Development Association's Private Sector Window, and loans of up to €14.5 million that will be mobilized from four commercial lenders.
The investment will enable Oásis Atlântico to refinance its existing debt with longer loan maturities of up to 14 years, which are not readily available in the local market, improving its financial structure and addressing its liquidity constraints caused by the pandemic.
The investment is expected to support more than 700 direct jobs and 20,000 indirect jobs, and sustain access to a reliable source of income for more than 700 SME suppliers and farmers who provide services and goods to Oásis Atlântico's hotels.
"We are thrilled to announce this partnership with IFC," said Alexandre Abade, CEO of the Oasis Atlântico Group. "This is a significant milestone that underscores our commitment to the development of tourism in Cabo Verde and will empower us to elevate our hospitality offerings, enhance guest experiences, and further solidify our position as a leading player in the industry in the country. We extend our gratitude to our investors for their confidence in our vision, and we look forward to continuing to deliver unparalleled hospitality experiences in all our hotels."
"IFC's investment in Oásis Atlântico will support a key player in Cabo Verde's hotel sector and strengthen the resilience of the country's tourism industry as a whole," said Olivier Buyoya, IFC Regional Director for West Africa. "By supporting hundreds of jobs and businesses in the hotels' supply chains, the financing also demonstrates IFC's broader commitment to fostering the country's economic growth and sustainable development."
Tourism is a key sector in Cabo Verde, representing 25 percent of its GDP and 45 percent of its formal jobs. Due to its reliance on tourism, the country's economy was significantly affected by the COVID-19 pandemic, but the tourism sector is expected to fully recover by 2025.
In addition to its investment, IFC will help Oásis Atlântico improve its corporate governance and its environmental and social performance. With three 4-star and one 5-star resort hotels in Cabo Verde, the Portuguese group is an important player in the archipelago's tourism industry.
The project is IFC's second initiative in Cabo Verde's tourism industry this year. In July, IFC announced a sustainability-linked loan to Cabo Verde Airport SA, a subsidiary of VINCI Airports, to strengthen infrastructure at the country's seven airports and help them reduce greenhouse emissions.
IFC is committed to stepping up its investment and advisory support in Cabo Verde, focusing on tourism, infrastructure, green energy, health & access to finance.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient: http://ida.worldbank.org/psw.
About Oásis Atlântico
Oásis Atlântico is a Portuguese economic group born in Cape Verde in the 90s and with more than 25 years of growth in the tourism sector. From Cape Verde, the Group grew to the Northeast of Brazil in 2000, and in 2019 started operating in Morocco. Known for its hospitality and involvement in promoting the culture of the communities where it stands, Oásis Atlântico currently owns or operates more than 3700 beds, spread across 8 hotels - 6 in Cape Verde, in Sal, Boa Vista, Santiago and São Vicente Islands, one in the Northeast of Brazil, in Fortaleza (State of Ceará), and one in Saidia, Morocco. www.oasisatlantico.com
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