IFC investing R650 M in Discovery World’s Palawan, Benguet hotels

The International Finance Corporation (IFC), the investment arm of the World Bank, is investing up to R650 million in upscale resort developer Discovery World Corporation (DWC).

In a disclosure to the Philippine Stock Exchange, DWC said it has signed a Subscription Agreement with the IFC. The fresh capital will allow the company to help meet the growing demand for hospitality infrastructure in the Philippines.

Under the agreement, IFC shall subscribe to up to 216.67 million 6,666) preferred shares at R3.00 per share, upon the request of DWC.

The preferred shares to be issued to IFC shall be convertible to common shares at any time after the expiry of 48 months from the date of IFC subscription subject to a conversion ratio.

The conversion ratio will be based on the number of preferred shares to be converted, average closing market price of common shares in the 120 days preceding the date of IFC’s notice to DWC of such conversion, and discount based on the certain periods of conversion availment set in the agreement.

Through IFC’s investment, two new hotels are set to rise in the Philippines’ key frontier locations: El Nido, Palawan and La Trinidad, Benguet.

These projects will expand DWC’s portfolio that includes Discovery Shores Boracay and Club Paradise Palawan in Coron. It also owns Discovery Fleet which operates cruise boats for scuba safari expeditions in some of the world’s best diving sites.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.

Working with more than 2,000 businesses worldwide, it uses its capital, expertise, and influence to create markets and opportunities in the toughest areas of the world.

The subscription of IFC shall be conditioned on the approval by the stockholders of DWC and the approval by the Securities and Exchange Commission of DWC's amended Articles of Incorporation on the reclassification of part of its present unissued common shares to preferred shares.