IFC invests $100 million in Egyptian Fertiliser Company
London, May 18, 2018 (AltAfrika)-The International Finance Corporation, IFC, a member of the World Bank Group, is providing about $100 million in debt financing to Egyptian Fertilisers Company (EFC), part of efforts to support Egypt’s crucial manufacturing sector.
The financing is part of a $445 million debt package backed by commercial banks and other international institutions. It will support the continued development of EFC, one of Africa’s biggest fertiliser makers, based in the Red Sea city of Sokhna.
IFC’s investment is expected to help create skilled jobs, stimulate foreign investment in Egypt’s manufacturing sector, and support smallholder farmers who buy EFC’s fertilizers.
“The investment will help us optimize our operations, grow into downstream opportunities, and strengthen our footprint as one of the leading exporters in Africa. We are very pleased to receive support from a quality institution such as IFC with whom we have had a long-standing history as a group,” said Hassan Badrawi, Group Chief Financial Officer of OCI N.V. and Chairman of EFC.
Egyptian Fertilizers Company is part of OCI N.V., a long-time IFC partner. OCI N.V. is a global producer and distributor of natural gas-based fertilizers and industrial chemicals. The company is listed on Euronext Amsterdam, with operations in North America, Europe, and North Africa.
“Egypt’s manufacturing sector is a vital source of high-skilled jobs,” said Walid Labadi, IFC Country Manager in Egypt, Libya and Yemen. “This investment will support one of Egypt’s biggest employers and create the type of secure, well-paying jobs the country needs to further its development and spur growth.”
The European Bank for Reconstruction and Development is providing EFC with a $60 million loan as part of the larger financing package. The remainder will be provided by local and international commercial lenders.
IFC’s financing is part of a larger effort to create jobs and drive economic growth in Egypt. IFC has invested close to $1 billion and implemented a wide-ranging advisory program to support small business owners, clean power projects, and local manufacturers in the country.