Kigali, Rwanda, June 23, 2011—IFC, a
member of the World Bank Group, is investing $13 million in Market Shopping
Center Limited (MSC Ltd) to help the Rwandan real estate company build
and operate a multi-purpose, eleven-storey commercial centre in downtown
Kigali that will help meet growing demand for modern office and retail
space as Rwanda’s economy expands.
IFC’s investment, its largest non-financial-sector related investment
in Rwanda to date, will be split into a $10 million loan and $3 million
in equity in Rwanda francs equivalent. IFC will work closely with MSC Ltd.
to implement international health and safety standards as well as green
building components at the site, which will also create employment opportunities
for small and medium enterprises.
Bertin Makuza, Chief Executive Officer and majority shareholder of MSC
Ltd, said, “IFC’s support will help MSC Ltd. ensure the highest international
environmental, social, health, and safety standards in our project. As
an added benefit, IFC’s long-term financing in Rwanda francs is adapted
to our needs and will help MSC Ltd partially address the shortage of good
commercial properties in Kigali.”
The financing in Rwandan francs is made possible by a unique swap agreement
between IFC and the National Bank of Rwanda. The facility enables access
to long-term, local currency funding in the financial system to spur economic
development. The commercial centre will also provide an urban foothold
for small and medium enterprises that have trouble gaining access to commercial
venues.
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said,
“The commercial centre will help meet demand for high-quality business
infrastructure in Kigali and catalyze local employment. As Rwanda
becomes an increasingly important business destination in East Africa,
IFC’s equity investment in Rwandan francs will help strengthen local capital
markets, which give way to broad economic development.”
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
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