International Finance Corporation (IFC) is considering a proposal to extend a loan of up to $145 million to support the hotel operations of Shangri-La Asia (SLA), which has been severely affected by the COVID-19 pandemic.
The proposed loan will be to Shangri-La Asia Treasury Limited, a wholly-owned subsidiary of SLA that is responsible for the treasury operation of the company and its other subsidiaries.
Listed in Hong Kong, SLA and its subsidiaries own and manage 101 hotels in over 20 countries. The coronavirus pandemic hit the tourism industry hard and has caused severe disruptions to the operations of SLA’s hotel properties. SLA had earlier said it might report a loss for six months as a result.
IFC’s proposed financing is aimed at supporting Shangri-La’s existing hotel and resort operations in Fiji, Maldives, Mongolia, and Sri Lanka. It comes at a time when long-term financing is not readily available as other investors’ appetite is significantly weakened amid a volatile market, the lender said.
Shangri-La operates two properties in the Maldives, one in Fiji, one in Mongolia, and two in Sri Lanka.
The proposed loan will help ensure that SLA maintains the employment of its staff, continues to work with suppliers, and, at the market level, promotes the resilience of the tourism sector, among others, according to IFC’s disclosure.
IFC said on its website that it is providing $8 billion in fast-track financial support to existing clients to help sustain economies and preserve jobs during this global crisis, which will likely hit the poorest and most vulnerable countries the hardest.
Its COVID-19 response fundings include $35 million to Bangladesh Prime Bank and $40 million to City Bank, $25 million to Cambodia’s Hattha Kaksekar Limited, $150 million to Vietnam Prosperity Joint Stock Commercial Bank, $35 million to India’s JK Paper and $150 million to China’s Muyuan Foods.