Morteza Hospitality Bonds mandates Bedford Row Capital for new USD38.5m Maldives hotel development ESG bond listing

Bedford Row Capital (BRC), a global non-bank structuring specialist, has been mandated to work with hospitality and leisure investments specialist, Morteza Hospitality Bonds PLC, for a listed bond offering of USD38.5million. The bond will be listed on the Frankfurt Stock Exchange maturing 2024. 

The bond will finance the development of an environmentally friendly, state of the art, branded, family-oriented, upper midscale resort in the Maldives by Keredhdhoo Investment, a subsidiary of Rainbow Construction, a leading Maldivian real estate developer which has successfully developed major commercial and residential projects since 2002. 

Central to the project and its financing are its environmental credentials and the preservation of the Atolls of the Maldives. The resort will therefore be constructed using modern construction techniques that combats erosion and limits construction waste, include renewables such as solar in its energy generation mix, which will provide close to 40 per cent of day-time energy requirements, ban the use of single-use plastics in its operations, and utilise a state-of-the-art sewage treatment plant, which will be environmentally friendly and is approved by environmental regulatory bodies. 

Dr. Scott Levy, CEO of BRC, says: “During such challenging and uncertain times, Bedford Row Capital is proud to provide its expertise, transparent and fast solutions to our clients in the most cost-effective way. The environmental credentials of this project and the developer are critically important in such a sensitive location and as we work closely with issuers to ensure the highest sustainability standards.” 

Ghaly Murthala, Managing Director for Morteza Hospitality Bonds PLC, says: “The Maldives has emerged as a global success story, proving resilience as a hotel destination despite the pandemic, and this bond will help Keredhdhoo Investment to satisfy the strong long-term demand for affordable, family-oriented hotels in the Maldives and close the projected 2,900 room deficit by 2023. The project addresses the gap in the market for mid-market resorts as the leisure and tourism industry recovers from the pandemic.” 

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