The International Finance Corporation (IFC) is supporting Orascom Development Egypt (ODE) with a sustainability-linked loan (SLL) of $155 million to enhance energy and water efficiency and reduce greenhouse gas (GHG) emissions in hotels in El Gouna on the Red Sea, as per an emailed press release.

The SLL comprises two tranches of $96 million and €55 million, and it will be used to refinance a portion of ODE’s existing debt.

The financing is set to enable ODE to reduce energy consumption at its hotels by up to 50% from non-renewable sources and water use by at least 20%.

“This partnership reflects our commitment as a global developer in contributing to a healthier planet, by creating vibrant destinations that harmonize with nature and boost Egypt’s economic growth,” Omar El Hamamsy, Group CEO of Orascom Development, said.

“At the same time, this funding facility also enables our company to optimize our financing terms by reducing our cost of capital, strengthening our liquidity and maintaining a net debt to adjusted EBITDA ratio of less than 1.3x,” El Hamamsy noted.

“Egypt’s tourism industry is a major contributor to employment, foreign exchange earnings, and tax revenues. Our partnership with Orascom Development Egypt is a testament to our shared commitment to supporting a strong and more sustainable tourism sector in Egypt," Sérgio Pimenta, IFC’s Vice President for Africa, stated.

Minister of Planning and Economic Development, and International Cooperation, and Egypt’s Governor at the World Bank Group Rania Al-Mashat highlighted that this partnership enhances Egypt's commitments within the framework of its nationally determined contributions.

This comes as Egypt aims to reduce greenhouse gas emissions by 33% in the energy sector, 65% in the oil and gas sector, and 7% in the transportation sector by 2030, Al-Mashat pointed out.

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