FRANSABANK represented by its General Manager Mr. Nadim Kassar co-signed with FRANSA Invest Bank represented by its two General Managers Mr. Mansour Bteish and Dr. Joe Sarrouh, with IFA Hotels and Resorts SAL Holding- a subsidiary of IFA Hotels & Resorts KSCC- represented by its Chairman Mr. Talal Jassim Al-Bahar, a joint agreement through which FRANSABANK and Fransa Invest Bank will finance “Al Abadieh Hills Project” over two phases and for a total amount of USD 30 million. USD 12 million is allocated for phase I and USD 18 million for phase II.
After assessing the financial viability of the project through the adaptation of advanced valuation techniques in relation to credit risk, risk management and project finance in general and real estate finance in particular; Fransa Invest Bank organized and structured this loan and will be in charge of its management,.
This loan is a milestone due to its special features and characteristics. First IFA Hotels & Resorts Holdings is quasi wholly owned by the two Kuwaiti companies IFA Hotels and Resorts Company and the Kuwait Real Estate – therefore there is no major local partner in the deal. Moreover, 40% of the loan was granted in the local currency. Third, the interest rates charged on both the LBP and USD portions of the loan are based on the Beirut Reference Rate, as indicated and revised by Association of Lebanese Banks (ABL). This reflects the great confidence the Arab investor attaches to our national economy and currency, his belief in the high return on investing in this economy, as well as his belief in its well-structured, organized, well-managed and professional banking sector.
As to the partners in this project, renowned FRANSABANK Group is the one of the largest banks on the local and regional levels. It offers a full range of banking products and services to individuals and corporations. The Group began its expansion strategy in the eighties whereby FRANSABANK France marked its first external growth back in 1985. Today FRANSABANK Group has an entrenched presence in Algeria through FRANSABANK El Djazaïr Algeria, Syria through FRANSABANK Syria, Sudan through United Capital Bank, and Belarus through FRANSABANK OJSC.
Fransa Invest Bank is fully owned by FRANSABANK SAL and has been operational since 2001. Fransa Invest Bank is the investment arm of FRANSABANK. It offers a diverse range of comprehensive financial and investment services, as well as brokerage services in the financial markets. It also provides business studies, economic, financial and banking researches. Fransa Invest Bank, thanks to its policies, strategies and clear objectives, succeeded to establish its presence and growing importance and to achieve various accomplishments that have in turn enriched its activity and role in the banking, financial and investment sectors in particular and to the national economy in general.
IFA Hotels & Resorts in partnership with Kuwait Real Estate Co. is responsible for the development of Aabdieh Hills project for a total land area of 85,000 square meters. Al Abadieh Hills Project is an integrated residential project consisting of villas, townhouses, apartments and tourist facilities of world-class that are designed and implemented by worldwide renowned consultants and contractors. Kempinski International will also provide a wide range of quality integrated services for the project.
IFA Hotels & Resorts is a leader in the development of hotels, resorts and multi-dimensional tourism projects in the Middle East, Europe, Africa, the Indian Ocean region, Asia, and North America. It has delivered in the past two years many residential projects and inaugurated a number of new hotels and resorts in South Africa, United Arab Emirates, Thailand, United Kingdom and Netherlands.
It is worth mentioning that IFA Hotels & Resorts is a company listed on the Kuwait and Johannesburg Stock Exchange, with a market capitalization rating that exceeds one billion US dollars. International Financial Advisors KSCC- based in Kuwait- is the main shareholder in IFA Hotels & Resorts.
As for Kuwait Real Estate KSCC, it was founded in 1972 as a Kuwaiti shareholding company, and is the first real estate company incorporated in the Kuwait Stock Exchange. The Company conducts the development of multi-purpose real estate projects within and outside the State of Kuwait. It has remarkable achievements in the implementation of projects of public benefit and at the highest levels of technical and administrative professionalism.