A signing ceremony for the largest hotel financing in the history of Pakistan was held here on Monday for the Avari Islamabad Hotel Project. This has a total project cost of Rs 4.779 billion, which is being financed through Rs 3.750 billion rated privately placed Term Finance Certificates (TFCs).
Byram D Avari, Chairman Avari Group, Badar Kazmi President Standard Chartered Bank Pakistan Limited, Mansoor Ali Khan head of Saudi Pak Bank and Muneer Kamal of KASB Bank sign the agreement.
The Standard Chartered Bank and Saudi Pak Commercial Bank were the mandated lead arrangers for the issue and KASB Bank acted as co-arranger. The 7-year issue has been rated single 'A minus' by JCR-VIS rating agency. These TFCs are being issued on the rate of 3.25 percent over KIBOR. The issue received an overwhelming response from the market and a diverse Investor base including banks, non-banks and funds invested in the TFC.
Speaking on the occasion Byram D. Avari, Chairman, Avari Group said the Avari family has been known in the hospitality business since 1944 when his late father Dinshaw B A vari purchased the Bristol Hotel in Karachi. Today, his sons Dinshaw and Xerxes, the new generation, are spearheading operations with lateral thinking and dynamic ideas.
Islamabad will be the height of "Luxury" being the first 417 all-suite hotel of Pakistan, with each room being 750 sq.ft, with two LCD TV's, separate spas for ladies and gents, a covered swimming pool, state of the art meeting rooms, a 1500 persons ballroom and 400 underground car park.
He said as many as 700 men and 300 women will be employed by the hotel and these 1000 persons will in turn be able to support their families of 10,000 persons.
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