Cairo – Carbon Holdings, a leading Egyptian petrochemical company, is pleased to announce the successful recapitalization of its loans amounting to US$265 million with Africa Finance Corporation (AFC), European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and Gulf Capital. This achievement highlights Carbon Holdings' resilience and ability to navigate through a volatile economic climate, demonstrating the Company's commitment to sustainable growth, long-term success, and confidence in Egypt and its economy.

The restructuring of these loans was initiated by Carbon Holdings and represents a major step in the Group’s recapitalization amidst the ongoing economic turbulence globally. Through diligent and fruitful negotiations, Carbon Holdings has been able to secure a recapitalization that better aligns with the Company's future growth plans. Global NYSE-listed investment bank, Houlihan Lokey, acted as Company’s Financial Advisor on the transaction. Gulf Capital led the discussions on behalf of the lenders.

The successful recapitalization of these loans not only reflects Carbon Holdings' strong financial management and strategic decision-making but also underscores the confidence and trust that Gulf Capital and the lenders have in the Company's long-term growth prospects. The recapitalization provides Carbon Holdings with the necessary financial flexibility to continue its operations amidst global supply chain disruptions and volatile commodity prices and to continue contributing to the growth and development of the Egyptian economy.

Carbon Holdings' Chairman and CEO, Basil El-Baz, expressed his gratitude to Gulf Capital and the existing lenders for their unwavering support and commitment to fostering economic stability in Egypt. He stated, "The successful recapitalization is a testament to our strong relationships with our partners and their belief in the appealing growth prospects of Carbon Holdings. We remain determined in our commitment to sustainable growth and job creation and will continue to contribute to the development of Egypt's petrochemical industry which is at the foundation of industrializing the Egyptian economy."

Majd Khodr, Executive Director at Gulf Capital, stated: “We are hopeful that the new capital structure will enable Carbon Holdings to unlock significant potential value in its underlying assets and to effectively navigate the changing economic landscape. The Company now benefits from a tailored capital structure that will allow it to continue its growth in the future.”

Arun Reddy, Managing Director and Head of Special Situations at Houlihan Lokey, stated: “We were pleased to act as financial advisor to Carbon Holdings and to help successfully recapitalize the business. We believe the recapitalization provides the Company with a dynamic capital structure to support the business going forward.”

As one of Egypt's leading petrochemical companies, Carbon Holdings has played a pivotal role in driving economic growth, direct and indirect job creation, and technological advancement in the country. The recapitalization of these loans demonstrates Carbon Holdings' resilience, long-term growth prospects, and reinforces its position as a reliable and strategic player in the industry.

About Carbon Holdings: 

Carbon Holdings is a privately owned midstream and downstream petrochemical and process

industrial plant company and is the principal shareholder and sponsor of several projects in the industrial zone in the Northwest Gulf of Suez, Egypt. Established in 2008 by Chairman and Chief Executive Officer Basil El-Baz, Carbon Holdings portfolio includes Oriental Petrochemicals Company (OPC), a top producer of polypropylene, and Egypt Hydrocarbon Corporation (EHC), the only producer of nitric acid and low-grade ammonium nitrate in the Middle East and Africa.

For media inquiries, please contact:
Mohamed Helmy
Managing Director- Investor Relations
helmy@carbonholdings.com