EGYPT – International finance institution, the International Finance Corporation (IFC) has announced it will support leading hospitality destinations developer Orascom Development Egypt’s (ODE) green tourism efforts with a US$155 million sustainability-linked loan (SLL).
The partnership is meant to support improvements in energy and water efficiency and reduce greenhouse gas (GHG) emissions at several hotels in El Gouna, a popular Red Sea destination in Egypt.
IFC is providing ODE with a Sustainability Linked Loan (SLL) worth a total of US$155 million, comprising US$96 million and US$57.7 million tranches. This loan will help fund green initiatives and growth projects in El Gouna, including renovations at the Mövenpick Resort and Spa El Gouna.
The loan will support ODE’s efforts to boost resource efficiency at its hotels by implementing measures such as heat pumps, solar water heaters, and water conservation practices.
These initiatives aim to reduce energy consumption by up to 50% from non-renewable sources and water usage by at least 20%.
Additionally, the SLL will assist in refinancing part of ODE’s existing debt and improving its debt profile. Moody’s is verifying the loan framework, which will be the first issued by a tourism and real estate company in Egypt.
IFC will also assist in helping ODE’s hotels in El Gouna achieve EDGE certification, an IFC innovation designed to promote resource-efficient buildings in a fast, affordable, and scalable way.
Tourism is a key contributor to Egypt’s economy, accounting for 8% of the country’s GDP in 2023 and employing 2.5 million people.
The sector is expected to generate another 1.5 million jobs over the next decade. By advancing sustainability in its tourism industry, Egypt can further enhance its economic competitiveness, reduce operational costs, and foster long-term, sustainable growth.
The project is in line with the World Bank Group’s Country Climate and Development Report (CCDR) for Egypt, which highlights opportunities to better align the country’s development objectives with its climate goals.
It also aligns with the World Bank Group’s Country Partnership Framework (CPF) for Egypt, aimed at fostering more and better private sector employment and enhancing resilience to economic shocks.
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