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Convertible loan to finance the expansion of industrial facilities and petrochemical projects in Egypt
Dubai - Investbridge Capital, an independent alternative asset management and advisory firm based in the Dubai International Financial Centre (DIFC) covering emerging growth markets, has today announced that it arranged and advised on a cross-border US$25 million (AED 92 million) convertible loan by the International Financial Corporation (IFC) to Carbon Holdings, an Egyptian developer and operator of downstream petrochemicals projects which will produce raw materials to supply industries, such as mining, food packaging, and automotive parts. IFC is a member of the World Bank Group. The investment is the second participation in a US$75 million five-year convertible loan structured by Investbridge Capital.
Mark DeSario, Chief Executive Officer, Investbridge Capital says: "We are proud to be associated with Carbon Holdings and are pleased to support them in their impressive growth story. Over the last five years Investbridge has been working closely with the Carbon Holdings team, and we are delighted that our deep understanding of the company has helped structure such a high profile financing, bridging a key international funding source with one of Egypt's most promising industrial ventures. It is clear that this partnership with IFC will enable Carbon Holdings to keep expanding and, at the same time, to contribute to the industrial growth of the country. This landmark transaction will have a positive impact on the Egyptian economy, creating value and jobs."
Basil El-Baz, Chairman and Chief Executive Officer of Carbon Holdings, said: "We feel privileged by this demonstration of support and confidence from a world-class institution like IFC. The growth capital financing provided by IFC illustrates the strength of Carbon Holdings' reputation and allows us to further develop projects which will create jobs, and support the industrial sector in Egypt."
Through its new TPC development, Carbon Holdings will be one of the largest petrochemicals developers and operators in Egypt. The TPC project alone will have a direct impact per-capita on GDP growth and be a key driver in the development of the manufacturing industry in Egypt. During construction, TPC is expected to create 20,000 job opportunities, employ more than 3,000 technicians and engineers during operations and produce another 25,000 to 50,000 direct and indirect jobs in the related industries which utilise the project's downstream mix as feedstock, such as the automotive, tire, packaging and construction industries.
Mouayed Makhlouf, IFC Director for the Middle East and North Africa adds: "This investment is in line with our strategy to support local entrepreneurs and increase their access to capital, boosting investors' confidence and spurring much needed growth in Egypt. It will support the development of a range of manufacturing industries that rely on chemical inputs that would otherwise have to be imported."
Both IFC's and Gulf Capital's earlier commitments to Carbon Holdings reflect the confidence installed in the Egyptian economy. Egypt, being Africa's second largest economy showed a steady growth of nominal GDP of 7.5% per year during 2012 to 2015 and Foreign Direct Investment into the country rose by over 50% in the fiscal year ending 30 June 2015. The recent increase follows fiscal and legislative reforms introduced by Egypt since the start of 2014 and 2015. Key sovereign supporters such as Saudi Arabia, the United Arab Emirates and Kuwait continue to support the country and have committed over US$30 billion in aid and grants to Egypt since 2013.
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About Carbon Holdings
Carbon Holdings Limited is a privately owned, non-governmental petrochemicals company domiciled in Egypt and was formed for the purpose of making long-term controlling investments in the downstream oil and gas sector (in particular the fast-growing chemical and petrochemical sector) with the objective of becoming a leading owner and operator of integrated petrochemical plants with a primary focus on Egypt. The Company seeks to develop and acquire a diverse portfolio of value-added assets in the Middle East and North Africa (MENA) region that span across the petrochemicals value chain in order to optimise economies of scale. The Carbon Holding teams' collective experiences put Carbon Holdings in an ideal position to take advantage of attractive global development and acquisition opportunities that provide a unique value-add to project shareholders. Among the Carbon Holdings' team are key personnel who have successfully led growth in strategy and M&A for some of the largest multinational petrochemical conglomerates; and others who have been involved in assessing the feasibility of some of the largest global projects undertaken in the last 40 years (from a technical, financial, and execution standpoint). Carbon Holdings projects have succeeded in securing attractive debt funding from local banks, regional banks, international banks and Export Credit Agencies; and equity financing from strategic and regional investors.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it's needed most. In FY15, our long-term investments in developing countries rose to nearly US$18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About Investbridge Capital
Investbridge Capital is a privately-owned and DFSA regulated independent provider of alternative asset management and corporate advisory solutions to the MENA-focused principals and clients. IBC has advised and transacted on deals in excess of US$ 6 billion. IBC is backed and supported by a number of prominent individuals and institutions from the regional and international financial and industrial community. IBC's focus is to deliver consistent and above average returns for its investor base in the disciplines of real estate development, downstream petrochemicals, hospitality and education. IBC takes a fully aligned approach with its investors and has invested as principals in all IBC asset management sourced opportunities, generally taking positions between 5-30% in all investments. With its headquarter strategically placed in the Dubai International Financial Centre (DIFC), IBC seeks to be a bridge between global capital and entrepreneurs seeking to develop and grow their businesses in emerging markets.
Issued by Borouj Consulting on behalf of Investbridge Capital Limited. For more information, please contact: Randa Mazzawi, randa@boroujconsulting.com, or Mayssa Makhlouf, mayssa@boroujconsulting.com, at Tel: +9714 3403005. Follow us on Twitter @Borouj.
© Press Release 2016
