Algiers, June 5, 2006 - The International
Finance Corporation, the private sector arm of the World Bank Group, today
signed an agreement to provide a quasi-equity investment of $10 million
to the Red Med Group, a leading Algerian logistics provider to the hydrocarbons
sector. This is IFC’s first investment in a private Algerian company.
It will help strengthen the Algerian logistics sector, a key element in
the further development of the country’s hydrocarbons industry.
The IFC investment will support Red Med Group’s expansion to meet growing
demand from oil companies for the logistics services it provides in Hassi
Messaoud, Algeria’s hydrocarbons hub. IFC also advises the Group on corporate
Abdelkader Allaoua, IFC Regional Associate Director, said, “Hydrocarbons
will play a key role in spurring Algeria’s future economic development.
Strengthening the logistical provisions to the sector will allow it to
grow to the benefit of the entire economy”. Ravi Bugga, IFC Senior Manager,
Infrastructure, added,. “We are excited to work with a prominent local
enterprise such as the Red Med Group, who has shown a track record of excellence
in providing quality services to the hydrocarbons sector”.
Mohammad Fechkeur, President and founder of the Red Med Group, added, ‘We
are very pleased with the IFC investment. This will help us meet
growing demand for our services from the hydrocarbons sector. We
can also benefit from IFC’s expertise in the area of corporate governance
to improve our management structure”. Red Med Group provides a base camp
, mobile camps, ground and air transportation, and a medical laboratory
for hydrocarbons companies and the city of Hassi Messaoud.
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 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. For more information, visit www.ifc.org.