The private sector arm of the World Bank invested P650 million in Discovery World Corp., the operator of Discovery hotel chain, to meet the growing demand for hospitality infrastructure in the Philippines.
Under the agreement, International Finance Corp. will subscribe to 216.67 million preferred shares at P3 per share, upon the request of DWC.
DWC said in a statement through IFC’s investment, two new hotels would rise in El Nido, Palawan, the Philippines’ largest marine sanctuary, and La Trinidad, Benguet, an agriculture-rich mountainous region.
These projects will expand DWC’s portfolio that includes Discovery Shores Boracay, a multi-awarded luxury resort, and Club Paradise Palawan, an exclusive island resort in Coron. It also owns Discovery Fleet which operates cruise boats for scuba safari expeditions in some of the world’s best diving sites.
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.
It will also be subject to a conversion ratio 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.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
IFC, working with more than 2,000 businesses worldwide, uses its capital, expertise and influence to create markets and opportunities in the toughest areas of the world.