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IFC Invests in Water Efficiency in the Middle East and North Africa


In Cairo:
Riham Mustafa
Phone: +20 2 2461 4230
E-mail:
RMustafa@ifc.org


Dubai, United Arab Emirates, June 17, 2013—IFC, a member of the World Bank Group, will help increase water efficiency and improve wastewater treatment in the Middle East and North Africa (MENA) by arranging up to $70 million in financing for one of the largest private water companies in emerging markets.

IFC will provide $50 million in loans to Metito, and has arranged a further $20 million loan to the company from the German development finance institution, DEG—Deutsche Investitions und Entwicklungsgesellschaft mbH. The investment will provide Metito with long-term financing in a challenging market, and will allow the company to fund water treatment projects in water stressed countries across Africa and Asia. This will increase the availability of drinking water, improve wastewater treatment infrastructure, reduce waste costs, and decrease health risks to local communities.


“We are grateful to IFC and DEG for providing such long tenor debt at the corporate level in very challenging market conditions,” said Rami Ghandour, Metito Managing Director. “This loan will enable Metito to continue to provide quality water treatment solutions that will help develop the water and wastewater sector in arid regions. It will also allow us to pursue further growth, both organically and inorganically, in emerging and frontier markets.”


Peter Thimme, Director for Europe, the Middle East and Central Asia at DEG said: “The protection of scarce water resources is a matter of particular concern to DEG. By making available long-term capital, which is limited on the market, we enable Metito to invest in future markets in the Middle East and North Africa.”


Metito, a global provider of water management solutions headquartered in Dubai, is already well placed to develop the water sector in MENA and China and is expanding further into emerging markets where water scarcity is a major concern. MENA has poor rates of wastewater recycling, but with greater urbanization and a growing population, re-using water is becoming increasingly important, especially for industry. Providing long-term finance to the private sector is necessary to meet the demands of water-scarce regions and countries.

       
“Water scarcity is a growing concern in MENA and this investment will help address that problem,” said Dimitris Tsitsiragos, IFC Vice President for Europe, Central Asia, the Middle East and North Africa. “With this investment in Metito, IFC is supporting the continued growth of one of the key players in this sector. This investment is also part of IFC’s efforts to promote cross-border investments within MENA and bolster the region’s economic integration with the rest of the world.”


IFC’s support for Metito is part of a strategic priority to help companies expand into emerging markets to transfer knowledge and expertise. IFC's strategy in MENA is focused on promoting South-South investments and has facilitated around $5.3 billion of investments in the past 10 years. The working relationship with Metito began in 2007, when IFC made an equity investment in the company. IFC has been working to extend provision and access in the water sector, while reducing scarcity, since 1993.


About IFC

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, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org.

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