Pickalbatros Group has closed a USD 250mn sustainability-linked financing package from the International Finance Corporation (IFC) and Attijariwafa Bank to fund its expansion plans in Morocco. The group's financial advisor, Zilla Capital, described this financing as the largest IFC-backed facility in the history of the Moroccan hospitality sector, and the largest for the Egyptian group, according to a press release (pdf).
Three key objectives of the financing: The facility comprises three tranches in two different currencies, aimed at covering Pickalbatros's recent acquisitions of Sofitel Casablanca Tour Blanche and Mövenpick Hotel Casablanca, funding sustainability and upgrading works for its hotels in Marrakech and Agadir, as well as refinancing existing debts with longer maturity terms, giving the group greater repayment flexibility.
However, the IFC disclosure lists different financing figures; it indicates an "A" Loan of up to USD 165mn and a "B" Loan of USD 135mn, arranged from parallel lenders, bringing total debt to USD 300mn within a USD 386mn investment program. Meanwhile, the disclosure stated that the IFC's investment "is up to USD 200mn", indicating three different figures for the financing size within a single disclosure.
The size of the financing package exceeds what we covered in our previous reporting in last June, when Pickalbatros received preliminary approval for a USD 200mn World Bank Group-backed facility for its expansion in Morocco. This means the final signed package is USD 50mn higher than the previously announced amount. At that time, the Casablanca acquisition deals were already underway; the group filed an application in May to acquire the 184-room Mövenpick Hotel Casablanca, roughly a month after purchasing Sofitel Casablanca Tour Blanche for USD 47mn.
A portfolio of 9 hotels.. and counting: Pickalbatros pledged in 2023 to inject USD 140mn to expand in Morocco, successfully growing its portfolio to 7 hotels with 2,600 rooms by September 2024, before rising again this October to over 2,700 rooms across 9 hotels, according to Zilla Capital's statement. The addition of the two Casablanca hotels this year followed the acquisition of 4 hotels during 2024. Pickalbatros has so far invested over USD 400mn in Morocco, according to statements made by Kamel Abou Aly, Founder and Chairman of the group, in an interview with Asharq Business.
Advisors: Zilla Capital acted as the exclusive financial advisor to Pickalbatros Group, while ADNA acted as legal counsel to the group. Clifford Chance provided legal advice to the IFC and Attijariwafa Bank. This transaction also marks the official launch of Zilla Capital's operations in Morocco.
