BIM Land receives USD 87.5 million from IFC for its tourism-led projects in Ha Long, Phu Quoc and Laos
Posted Date September 17, 2019
BIM Land Joint Stock Company, a real estate development arm of BIM Group, has successfully secured a USD 87.5 million financing provided by IFC, a member of the World Bank Group. The loan is intended to support BIM Land’s property projects in Ha Long, Phu Quoc and Vientiane. All of these projects are located in tourism-led areas of the countries hence the implementation of these projects will attract an increasing number of domestic and international tourists, creating more jobs and boosting local economies.
Both Vietnam and Laos are believed to possess significant potential for further tourism growth. Compared to Thailand which receives 38 million foreign visitors annually, in 2018 Vietnam and Laos received 15.5 million and 4.2 million international arrivals respectively. The lower tourism infrastructure is found to be the main reason for this difference.
IFC long-term funding comes at a time of major momentum for BlM Land, which now is focusing on providing wide range of property products aiming at enhancing the quality of tourism infrastructure and attracting repeat visits and encouraging tourists to stay longer.
“We value IFC’s extensive experience and expertise drawn from its global portfolio of tourism projects,” said Mr Doan Quoc Huy, CEO. As part of this project, BIM Land will add a significant number of international quality hotel rooms or serviced apartments — more than 1500 — in Vientiane, Ha Long Bay, and Phu Quoc Island. Moreover, the project scale and scope in Phu Quoc Island is expected to set new environmental and social standards in the property sector, attracting a new category of domestic and international tourists.”
IFC’s financing package to BIM Land and its subsidiaries consists of a loan of up to $50 million for IFC’s own account and a trust loan of up to $37.5 million from multi-investors Managed Co-Lending Portfolio Program (MCPP) managed by IFC. BIM Land’s project in Vientiane shall receive at least $10 million from this package.
“We are very honoured to be working with an important multilateral organization such as the IFC. We believe that this is one of a first few substantial long-term financings by the IFC to a Vietnamese tourism/real estate development company in Vietnam and we are extremely proud. It is a stamp of approval to our ability to execute high-quality projects with a greater impact on the wider region” said Ms Ha Bui, BIM Land’s CFO.
In addition, as our commitment to green and sustainable tourism development, BIM Land has committed to applying IFC's Policy on Social and Environmental Sustainability and Performance Standards and IFC’s Excellence in Design for Greater Efficiencies Green Building Certification System (EDGE) in our new hotels to be developed under this project with the aim of reducing energy, water, and material consumption by at least 20 percent compared with similar buildings.
About BIM Land
BIM Land, a real estate development arm of BIM Group – a conglomerate in Vietnam focusing on 4 main activities including real estate, renewable energy, aquaculture & foods, consumer & lifestyle. BIM Land is one of the largest land bank owners in the country especially in areas with high potential for tourism development such as Ha Long and Phu Quoc. BIM Land is proud to be the leading tourism infrastructure developer in Vietnam as well as the partner of choice for global hospitality brands such as Park Hyatt, Intercontinental, Regent, Crowne Plaza, Fraser, Citadines… and local brands such as Sailing Club, H&K Hospitality. BIM Land’s real estate products varies from high- rise apartment complexes, town houses, to luxury beach villas, hotels and resorts.