AFRICAN Sun (ASL) is set to conclude the first phase of its fund-raising programme after securing more than half of the required US$60 million needed to finance the group's refurbishment and expansion programme. ASL had 2 500 rooms under its ambit as of March 31.

The US$36 million that has been raised so far is expected to more than triple the number of rooms under ASL management to 8 500 by 2012.

Of that amount, US$15 million was borrowed from African multilateral financial institutions. The debt has to be paid over seven years.

The bulk of the money (US$21 million) will come from equity funding which could be in the form of private placement or rights issue.

A private placement involves the sale of securities directly to an institutional investor, such as a bank, mutual fund, insurance company, pension fund or foundation.

A rights issue is a way in which a company can sell new shares in order to raise capital.

Shares are offered to existing shareholders -- at a discount to the current share price -- in proportion to their current shareholding and respecting their pre-emption rights.

The equity funding route is expected to sail through when the group's shareholders hold an extraordinary general meeting (EGM) in two weeks time.

Standardbusiness heard last week that there were private equity companies interested in investing in emerging markets.

Zimbabwe is seen as an emerging market following the formation of the inclusive government in February and analysts say the environment obtaining has given confidence to investors.

If ASL refurbishes and builds new hotels, it will be the first step towards the hospitality group's dream of a dual listing on a foreign stock exchange and insiders say London has been identified as the right bourse.

ASL plans to list on the London Stock Exchange by 2012.

Close sources says ASL shareholders will bless the deal.

"ASL shareholders are sober and they will vote for the deal. They are the same shareholders that created value through Dawn Properties," an analyst said.

ASL, with operations in Nigeria, Ghana, South Africa and Botswana among others, plans to open five new hotels by January next year is on course to achieve its pan African drive. By 2012, ASL envisages that regional contributions to the group's bottom line will be 35% from West Africa, East Africa (7%), Southern Africa excluding Zimbabwe (33%) and Zimbabwe (25%).

The increase in the rooms under management is envisaged to grow the group's market capitalisation to US$1 billion by 2010.

The refurbishment of the group's hotels is designed to make the properties attractive to visitors for next year's soccer World Cup in South Africa.

Meanwhile Crowne Plaza and Holiday Inn hotels, owned by ASL on Tuesday donated textbooks to Tinokwirira Primary School in Mabvuku as part of the group's social responsibility programme.

Achieving universal primary education is one of the three areas that ASL has adopted alongside health improvement and eradication of poverty and hunger.