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VCB and Jordan Phosphate Mines Company (JPMC) Launch the Expansion Project of Jordan Al Abyad Fertilizers and Chemicals Company (JAFCCO) At US$90 Million

With the Blessing of Jordanian Prime Minister, H.E. Nadir Al Dahabi....
Venture Capital Bank and Jordan Phosphate Mines Company (JPMC) launched the expansion project of Jordan Al Abyad Fertilizers and Chemicals Company (JAFCCO) . The total cost of the project estimated around US$ 90 million, and it's a partnership between Venture Capital Bank , Jordan Phosphate Mines Company and other strategic Jordanian partners whereby Venture Capital Bank represents the largest investor in the Company. The construction process will commence in Al Abyad Area close to the Abyad phosphate mines which will supply phosphate rock, one of the main raw material required for the expansion project.

The project comes at a time of increasing global demand for fertilizers and the skyrocketing of its prices, in addition to the Jordanian government support for investments in Jordan. The intensive efforts by all parties culminated in the signing of the agreement last month in the Chinese Capital Beijing with CQMMC, one of the major state owned Chinese Engineering, Procurement and Construction contractors to carry out the Expansion Project on a Turnkey basis. The project will have many benefits to Jordan especially when utilizing the two main raw materials, phosphate rock and potash, and offering job opportunities for technical and managerial talents.

From his side, Board Member and Chief Executive Officer of Venture Capital Bank Bahrain, Abdullatif Mohammed Janahi, said: "We are glad to announce the kick of the project; we have great confidence in our partners in Jordan and the company's executive management whom we provide our confidence and full support in order to ensure smooth completion of the project. There is no doubt that Jordan presents a good investment environment that opens up the potential for a diverse world of opportunities. The project will provide (370) job opportunities and will give diversity to the manufacturing of raw materials for Potash and phosphate available in Jordan.

Chief Investment Officer, Private Equity & Financial Advisory of Venture Capital Bank , Mr. Sharif Monfaradi said: "This project is unique in its diversity of product range within one roof, which is not the case with many projects in different parts of the world. He also pointed out that the Expansion Poject will produce 132,000 tons Sulphuric Acid, 80,000 tons of Potassium Sulphate, 65,000 of Triple Super Phosphate, 15,000 tons of Di-Calcium Phosphate and 58,000 tons of Calcium Chloride.

The Jordanian Prime Minister H.E. Nadir Al Dahabi had met last April with Mr. Walid Al Kurdi ( JPMC 's chairman), Mr. Abdullatif Mohammed Janahi, Engineer Khalid Manasrah CEO of JAFCCO and Mr. Sharif Monfaradi, were he commended the project and highlighted the importance of the project to the Hashemite Kingdom of Jordan and its citizens affirming the government's keenness in providing healthy environment to encourage investments in Jordan.

This signing ceremony was attended by all parties in addition to the Bahraini Ambassador in Amman, Mr. Nasser Al-Kaabi and representatives of the Chinese Embassy in Amman.

-Ends-

About Venture Capital Bank :
Venture Capital Bank is a Bahrain-based Islamic investment bank established in October 2005 with a full investment banking license from the Central Bank of Bahrain. Venture Capital Bank is capitalized at USD 165 million with an authorized capital of USD 500 million. Venture Capital Bank has a strong shareholder base comprising of some of the largest institutions, family groups and high net worth individuals from the GCC countries. Venture Capital Bank has an experienced team of professionals with extensive experience in venture capital and business development, private equity, real estate and financial advisory in the U.S., Europe, Australasia and the Middle East. MENA Small & Medium Enterprises Fund I L.P. is co-managed by Venture Capital Bank and Global Emerging Markets Inc. For further information please visit www.vc-bank.com

About JAFCCO
JAFCCO is a Jordan based fertilizer and Chemicals Company specialized in the production of high quality Potassium Sulfate ("K2SO4"or "SOP") and Hydrochloric Acid ("HCL"). Over the years, JAFCCO has gained the technical expertise and know-how required to run a successful fertilizer manufacturing company. This was reflected in the Company's performance with sales registering an upward trend since inception. JAFCCO 's full production capacity is pre-sold to customers in Egypt, Saudi Arabia, Syria, Spain, Australia, India and UAE. At the current production level, JAFCCO is the only major producer of SOP in the MENA region, supplying only a fraction of the demand from Asia and Africa while the rest is imported from Europe and North America. The proceeds of the investment by all shareholders along with a Shari'ah compliant project financing facility will be utilized to fund JAFCCO 's Expansion Project - a USD 90 million state-of-the-art industrial complex specialized in manufacturing chemical fertilizers and other kinds of industrial chemicals that are currently imported into the MENA region.

For any further information, please contact:
May Marzooq
Corporate communications & marketing
Tel +973 17518872
Fax +97317518880
E-mail: Marzooq@vc-bank.com
Website: www.vc-bank.com

© Press Release 2008