01 May 2014
The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, together with Al-Nouran Multitrading (ANM), Egypt's leading private sector sugar trading house, have announced the signing of the Islamic Senior, Mezzanine and Working Capital Facilities Agreements for a new mega sugar production facility in Al-Sharkia Governorate.
A total of $372 million will be invested into building this facility, which is expected to produce and refine more than 500,000 metric tons of sugar annually.
Al-Nouran Sugar project is a key investment in the Egyptian agribusiness sector with the potential of reducing the country's reliance on imported sugar by up to 25percent, generating up to 800 new direct jobs and generating thousands of indirect jobs associated with the sugar production value chain particularly the production and delivery of sugar beet.
Al-Nouran Multitrading (ANM), Egypt's leading private sector sugar trading house and the key sponsor promoting the project, embarked on the project with the view of creating a vertically integrated sugar production platform which can operate at world class standards in agricultural production and agro-industrial processing.
ANM approached ICD in May 2011 to promote this project during the post Arab Spring critical period.
ICD supported the project by a package including equity investment, mezzanine financing and standby
guarantees of up to $46 million.
Further, ICD played a key role in arranging and structuring equity investment and mezzanine financing as well as supported ANM in negotiating and closing remaining financing package.
Ashraf Mahmoud, ANM's chairman and CEO, said: "We are looking forward to creating a premier agribusiness platform in partnership with ICD and our other shareholders in line with Egypt's economic and social developmental priorities".
Khalid Al-Aboodi, CEO of ICD, stated, "We hope to promote an example of mobilizing investments through cooperation with DFIs, local banks and leading public/private investors in response to key developmental priorities including the concerns of Food Security which are felt across many of our member countries. We are proud to be involved in similar projects to help address such challenges in Egypt and other MENA markets in general."
The facility is expected to conclude construction and begin its operations in 2016.
The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, together with Al-Nouran Multitrading (ANM), Egypt's leading private sector sugar trading house, have announced the signing of the Islamic Senior, Mezzanine and Working Capital Facilities Agreements for a new mega sugar production facility in Al-Sharkia Governorate.
A total of $372 million will be invested into building this facility, which is expected to produce and refine more than 500,000 metric tons of sugar annually.
Al-Nouran Sugar project is a key investment in the Egyptian agribusiness sector with the potential of reducing the country's reliance on imported sugar by up to 25percent, generating up to 800 new direct jobs and generating thousands of indirect jobs associated with the sugar production value chain particularly the production and delivery of sugar beet.
Al-Nouran Multitrading (ANM), Egypt's leading private sector sugar trading house and the key sponsor promoting the project, embarked on the project with the view of creating a vertically integrated sugar production platform which can operate at world class standards in agricultural production and agro-industrial processing.
ANM approached ICD in May 2011 to promote this project during the post Arab Spring critical period.
ICD supported the project by a package including equity investment, mezzanine financing and standby
guarantees of up to $46 million.
Further, ICD played a key role in arranging and structuring equity investment and mezzanine financing as well as supported ANM in negotiating and closing remaining financing package.
Ashraf Mahmoud, ANM's chairman and CEO, said: "We are looking forward to creating a premier agribusiness platform in partnership with ICD and our other shareholders in line with Egypt's economic and social developmental priorities".
Khalid Al-Aboodi, CEO of ICD, stated, "We hope to promote an example of mobilizing investments through cooperation with DFIs, local banks and leading public/private investors in response to key developmental priorities including the concerns of Food Security which are felt across many of our member countries. We are proud to be involved in similar projects to help address such challenges in Egypt and other MENA markets in general."
The facility is expected to conclude construction and begin its operations in 2016.
© Arab News 2014