Rabat, 27 June 2006 – The International
Finance Corporation, the private sector arm of the World Bank Group, today
signed an agreement to invest in the Maghreb Private Equity Fund II LP.
This regional private equity fund will target companies in Morocco, Algeria,
Tunisia, and, in a second stage, Libya. IFC has committed to invest
up to 15 million Euros in the fund’s initial capital of 55 million Euros.
Through this investment, IFC aims to
develop regional champions in high-growth sectors. The fund will serve
a diversified portfolio of commercial and industrial companies, mainly
in agribusiness, consumer products, telecommunications, financial services,
transport, and distribution. Through equity and quasi-equity investments,
the fund will support the development of private sector enterprises, as
well as the privatization of regional state-owned enterprises. These
investments will function as a catalyst for the mobilization of further
financing for these enterprises.
Other investors in the fund are the European
Investment Bank, the Netherlands Development Finance Company, CDC Enterprises,
the Swiss Investment Fund for Emerging Markets, the Belgian Investment
Company for Developing Countries, the private sector lending arm of the
French development agency, Averroès Finance, and Tuninvest Finance Group.
The fund will be managed by the Tuninvest Finance Group, a financial
services company owned by its employees.
Abdelkader Allaoua, IFC’s Regional Associate
Director for Middle East North Africa, said, “IFC’s investment in the
Maghreb Private Equity Fund II will enhance the competitiveness of leading
companies in the region. The fund will provide equity and other value
added services to small and medium enterprises, transferring strategic
and operational skills to local entrepreneurs.”
Tuninvest Finance Group is the leading
private investment institution in Tunisia and manages more than 150 million
Euros in investments. Tuninvest Finance Group adds value to its portfolio
enterprises by being on their boards and assisting them with their strategic,
operational, and financial management.
The International Finance Corporation
is the private sector arm of the World Bank Group and is headquartered
in Washington, D.C. IFC coordinates its activities with the other
institutions of the World Bank Group but is legally and financially independent.
Its 178 member countries provide its share capital and collectively
determine its policies.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing and transition
countries, helping to reduce poverty and improve people’s lives. IFC finances
private sector investments in the developing world, mobilizes capital in
the international financial markets, helps clients improve social and environmental
sustainability, and provides technical assistance and advice to governments
and businesses. From its founding in 1956 through FY05, IFC has committed
more than $49 billion of its own funds and arranged $24 billion in syndications
for 3,319 companies in 140 developing countries. IFC’s worldwide committed
portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion
held for participants in loan syndications.