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IFC Provides First Loan in Egyptian Pounds, Supporting Egypt’s Construction Sector


In Cairo:
Riham Mustafa

Phone: +(202) 2461-4230

E-mail: rmustafa@ifc.org


Cairo, Egypt, May 9, 2018—IFC, a member of the World Bank Group, is providing a $15 million loan mainly in Egyptian pounds to Vinavil Egypt for Chemicals, a leading manufacturer of construction-related materials, to help the company boost production and create jobs.

IFC’s financing will help the company double its annual production of chemical binders and emulsions, which are used in paints for industrial and commercial projects. IFC is also addressing the need for local currency financing by providing the loan largely in Egyptian pounds, a first for the organization. This will address Vinavil Egypt’s need for flexible borrowing in both Egyptian pounds and US dollars, and create a model for future multi-currency loans.


“The flexibility of borrowing in both Egyptian pounds and US dollars will enable our company to make long-term capital investments and support our working capital,” said Gianmaria Palazzolo, Managing Director of Vinavil Egypt. “The financing from IFC will help us expand in Egypt and become a regional exporter of specialty construction chemicals, creating jobs, especially for highly skilled workers.”  


The financing is part of IFC efforts to boost the development of Egypt’s construction industry, an important source of employment and a key economic driver. It accounts for more than 4 percent of Egypt’s gross domestic product and
employs 12 percent of Egyptian workers. The industry is also one of the country’s fastest growing sectors, having grown by 10 percent in 2017.  

“Supporting the development of Egypt’s construction industry is key to spurring economic growth,” said Mouayed Makhlouf, IFC Director for the Middle East and North Africa. “Local currency financing, which we plan to expand, is also vital for sustainable private sector investment. Providing the loan in Egyptian pounds ensures the currency is more accessible to local companies, which can help boost crucial industries like manufacturing and construction.”


The investment is part of IFC’s wider efforts to promote private-sector-led growth in Egypt. In the last 10 years, IFC has invested close to $3 billion in the country’s private sector, and is aiming to invest a further $1.5 billion this year, including money mobilized from other investors.


About Vinavil Egypt

Vinavil Egypt is a subsidiary of Mapei SpA, a global IFC chemicals client.  It was established in 2001 and is a subsidiary of Vinavil SPA, which in turn is wholly-owned by Mapei, a global leader in the specialty construction chemicals used in infrastructure projects, including housing, underground construction, ports, and in the marine industry. The company is a three-generation family-owned businesses, founded in 1937 and headquartered in Milan, Italy. Mapei has 82 subsidiaries, 28 research and development centers, and 79 production plants in 34 countries. The company employs around 10,000 people globally, 27 percent of whom work in emerging markets. Mapei SpA was supported in this transaction by Ethica & Mittel Debt Advisory, the advisory arm of the Mittel Group - investment and merchant bank.



About IFC

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

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