📋 Tender Overview
IFC a member of the World Bank Group is making a 175 million investment in John Keells Holding JKH to expand its supermarket chain in Sri Lanka and help fund expansion or refurbishment of hotel properties in Sri Lanka and the Maldives.The 175 million long term investment is IFCs largest in Sri Lanka in 50 years of work in the country and will be the first supporting investments in the Maldives in a decade. The move is intended to provide JKH the flexibility and agility to fund its investments in an optimal manner while providing additional support to the Groups liquidity position. Overall JKHs expansion plans for its supermarket and hotel operations will generate significant jobs over the next five years.I believe partnering with an internationally reputed financial institution such as IFC particularly at this juncture of time is a vote of confidence for JKH and the country at large said Krishan Balendra Chairman and CEO of JKH. Sri Lankas growth prospects in the medium to long-term remain positive and we are confident that as always we have the strength and resolve to keep moving forward with our investment pipeline despite the current period of unprecedented challenges where the outlook is now more positive.With tourism being a vital area for both Sri Lanka and Maldives the investment will help create much needed direct and indirect jobs as well as generate considerable foreign exchange. In addition as a longstanding partner since 1999 this investment in JKH will be used to support the Groups plans to open about 100 new supermarkets in Sri Lanka over the next three to five years with a focus on less developed regions a move that will benefit micro small and medium sized enterprises as well as farmers who will become part of the supply chains to the new stores.IFC support will enable JKH as one of the largest and most reputable businesses in Sri Lanka to continue to invest and ultimately create more jobs and work for small and medium sized businesses despite the challenging economic headwinds and uncertainty over COVID-19 said Amena Arif IFC Country Manager for Sri Lanka and the Maldives. It will also send a strong and positive message to the investor community that capital investments in Sri Lanka and Maldives are viable at this challenging time and are important to help the economies and the community to build resilience for the future. The investment which is part of IFCs broader efforts to create quality jobs in Sri Lanka and the Maldives will also boost the supply of green hotels in the Maldives to meet growing demand. JKH will adopt IFCs green building standards EDGE Buildings for its newly refurbished hotels in the Maldives aimed at providing a demonstration effect to other hotel operators. In the Maldives tourism has accounted for nearly three-quarters of the countrys total GDP while in Sri Lanka tourism was prior to the pandemic the third largest and fastest growing source of foreign currency in the country.
