World Bank’s private investment arm International Finance Corp (IFC) is likely to extend a debt to the extent of $27 million in three resort hotel projects of Melwa Hotels and Resorts Private Limited (MHRPL) in Sri Lanka.
IFC’s latest proposed investment in the hospitality business follows its $12.8 million infusion in the hotel and resort business of Philippine-listed company Discovery World Corp three weeks ago.
The proposed Sri Lankan transaction is an A loan in MHRPL, which is developing three resort hotels in Sri Lanka, such as the 96-room hotel in Negombo, the 42-room hotel in Yala, and a 196-room hotel in Kosgoda.
The project’s operator is Hilton Worldwide Manage Limited. The total project cost is $78 million.
Proceeds of the IFC loan will be used to fund the construction of all three hotels.
MHRPL is 94 per cent owned by Melwire Rolling Private Limited (MRPL), a leading steel rod manufacturer in Sri Lanka with facilities located in Ekala, Ja-ela and Seeduwa.
Established in 2004, MRPL is 100 per cent owned by the Periyasamy Pillai family and produces QST steel bars and GI box bars and coils.