Announcement of IFC Investment in Promotora de Hoteles de Turismo Medellin S.A., Colombia on February 19, 1970

HOLD FOR RELEASE t • INTERNATIONAL FINANCE CORPORATION 1818 H STREE·T, N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC News Release No. 70/5 Subject: IFC Investment in Promotora de For Release in Morning Newspapers Hoteles de Turismo Medellin of Thursday, February 19, 1970 S .A., Colombia The International Finance Corporation, of the World Bank Group, annotmced that it will assist the development of the Colombian tourism industry by helping to finance a $4.15 million equivalent hotel project in Medellin. T.he IFC conunitment. is in Promotora de Hoteles de Turismo Medellin S. A., which is building a first-class tourist, business and convention hotel. The sponsors of the project are an independent Medellin industrial group; Avianca, the Colombian national airline; Corporacion Nacional de Turismo; ADELA Investment Company; Inter- continental Hotels Corporation, a subsidiary of Pan American World Airways; and IFC. ~ The original plan for the hotel called for 252 guest rooms, later increased to 336 rooms. This, plus other changes, required additional financing that the IFC commitment is helping to supply. Equity for the Medellin hotel project includes: the Medellin group, Corporaction Nacional de Turismo and Avianca, $1,079,000 equivalent; ADELA, $398,000 equivalent; Intercontinental Hotels, $398,000; IFC, $114,000. The balance of the financing is in funds provided by Colombia's Central Bank (Banco de la Republica) through a group of Colombian banks, approximately $851,000 equivalent; by the Fondo para Inversiones Privadas, through a group of Medellin banks headed by Banco Commercial Antiqueno, $851,000 equivalent; by IFC, $227,000; and by Corporacion Financiera Nacional, a development finance company in which IFC has invested, $62,000 equivalent; plus suppliers' credits of $170,000 equivalent • • (more)  // IFC News Release No. 70/5 -- Colombia • - 2 - With the new commitment, IFC will have made 32 investments totaling approxi- mately $18.6 million in 17 Colombian projects. The projects had a total cost of approximately $140 million and were in the fields of electrical equipment, fiber- board, food products, home furniture, livestock, metal cans, steel forging, textiles, tourism, warehousing and development finance companies. * * * • •