The International Finance Corporation (IFC), the private lending arm of the World Bank, will invest $2 million in a Laos-based greenfield project developed by Aanandi Group.
The financing will be provided in the form of A loan from IFC’s own account, it said in a disclosure.
Aanandi Group is a newly established property development company formed by private investors, with a financial backer holding a 45 per cent stake. Its operating shareholders have expertise in the construction, architectural, project management and hospitality industries for more than 20 years each, the IFC disclosure said.
The project that IFC will be supporting has an overall cost of $6.6 million and covers a seven-storey residential building located in Vientiane, located six kilometres from the main town centre. The building, which will house 76 units covering a gross floor area of approximately 6,500 square metres, is expected to commence commercial operation in 2020.
IFC plans to provide a long term debt facility with repayment structure to match the cash flow profile of the project. “Long-term financing is not available for developers in Laos,” it said in the disclosure, adding that Aanandi had the ability to develop larger projects that will need industry expertise from IFC.
As urbanization is accelerating in the city, the asset is expected to address the need for residential and business infrastructure. It will also potentially create local linkages with other businesses, especially small and medium companies, as well as garner interest from more investors and local entrepreneurs to invest in the city.