Cairo, Egypt, May 15, 2018—IFC,
a member of the World Bank Group, is providing up to $100 million in debt
financing to Egyptian Fertilizers 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 fertilizer 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
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.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org