Cairo, Egypt, June 11, 2012—IFC,
a member of the World Bank Group, has committed a $100 million loan to
Orascom Construction (OC), an agreement designed to create jobs, stimulate
foreign investment in Egypt and buttress the country's strategically important
The loan will help OC, a wholly-owned
subsidiary of Orascom Construction Industries, expand its operations in
Egypt and Iraq, boosting employment both directly and indirectly through
subcontractors. The investment is an integral part of IFC’s strategic
response to recent events in Egypt, a country with strong long-term potential
despite recent economic setbacks.
"Securing this loan will provide
Orascom Construction with the necessary capital to
expand its operations across the region," said Salman Butt, Chief
Financial Officer of OCI. "We are pleased with the IFC's continued
commitment to the company, as well as the country, and look forward to
further developing our longstanding relationship in the future."
Mouayed Makhlouf, IFC Director for the
Middle East and North Africa, said, “By supporting a group like Orascom
Construction, we want to send the signal that Egypt has a long-term potential.
This investment fits with our strategy of boosting confidence in Egypt's
private sector, a major contributor to employment."
The construction and infrastructure
sectors are major parts of the economy in the Middle East and North Africa,
employing over 18 million people.
Since January 2011, IFC has committed
$1.9 billion, including mobilization, in the region. Many of our investments
and advisory services are designed to support economic development and
promote investment in countries whose economies have struggled in the wake
of recent events.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,