ZaraAnnual-English2015

International Finance Corporation (“IFC”) - Zara Investment Holding Company - USD
On 28 February 2008 the Company signed a loan agreement of USD 40,000,000 to finance the construction of Movenpick
Hotel at Tala Bay located on the south coast of Aqaba. The loan is guaranteed by a mortgage on the Company’s shares in
Jordan Hotels and Tourism Co. and National Hotels and Tourism Co. and the guarantee of Amman Tourism Investment Co.
The loan period is 10 years including a 3-year grace period.
The loan is repayable in 14 semi-annual instalments of USD 2,837,000 each except the last instalment of USD 3,119,000 at
annual interest rate of 1.6% plus LIBOR determined at the date of each disbursement and fixed for the tenure of the loan.
The first instalment was due on June 15, 2011 and the last is due on 15 December 2017. During the second half of 2008,
the Company utilized USD 30,000,000 and USD 7,000,000 at an interest rate 6.17% and 3.79% respectively. During the first
half of 2009, the Company utilized the remaining balance of USD 3,000,000 at 4.22%.
The loan agreements include covenants in respect of the financial ratios related to the financial statements of the borrowing
companies. The agreements provide for calling the entire loan balance in case the borrowing companies do not comply
with such covenants.
The aggregate amounts and maturities of the loans are as follows:
Year
JD
2016 12,032,826
2017 10,549,149
2018 6,406,200
Total 28,988,175
16 Due to Banks
This item represents the balance of the overdraft facilities granted to the Company and Jordan Hotels and Tourism
Company (subsidiary) from Cairo Amman Bank, Arab Bank and Union Bank with ceilings of JD 5,000,000, JD 1,000,000 and
JD 2,000,000 respectively. The annual interest rate on these facilities is 8.325% including the commission.
Annual Report 2015
87