Egypt Orascom Construction Industries: IFC Gets OK For $450M Investment

Sunday, Jul 31, 2011

CAIRO (Zawya Dow Jones)--Egypt's Orascom Construction Industries, or OCI, Sunday said International Finance Corp., the part of the World Bank that lends to the private sector, has received approval to provide a $450 million debt and equity package for the Cairo-based firm that could create more than 2,500 jobs across the region.

OCI said the investment would consist of a $200 million loan for the Egyptian Fertilizer Company. This will help mobilize an additional $200 million loan from other lenders, and a $50 million equity investment through the acquisition of shares in OCI.

The International Finance Corp., or IFC, traditionally invests to help companies and financial institutions in emerging markets create jobs, generate tax revenues, improve corporate governance and environmental performance.

"This investment is a testament to the IFC's belief that Egypt remains an attractive foreign direct investment market. We are confident that the IFC's package has set a precedent to local banks to lend to Egyptian companies," said OCI's Chief Financial Officer Salman Butt.

OCI added that the share buyback programs announced in June and July will help facilitate the IFC's purchases of OCI shares.

-By Shereen El Gazzar, Dow Jones Newswires; +9714 446 1684; Shereen.elgazzar@dowjones.com

(END) Dow Jones Newswires

31-07-11 0921GMT