WASHINGTON, D.C., JUNE 13, 2000 — The
International Finance Corporation has concluded two transactions, to support
banking and manufacturing in Algeria, both aimed at encouraging further
investments that will contribute to rebuilding the Algerian economy.
As part of its strategy to reinforce the financial sector as a vehicle
to development, IFC will acquire a 20 percent stake in Algiers Investment
Partnership (AIP), the first specialized, full-service investment bank
in Algeria. AIP will provide investment banking services including corporate
finance, private and public placement of debt and equity issues, research
and brokerage, and fund management activities.
The Cairnwood Group, a U.S. international investment management company,
will hold 60 percent of AIP's share capital. The local management team,
which includes Mr. Sammy Oussedik, the company's chief executive officer,
will, together, hold 20 percent of the share capital.
Through its affiliation with the Cairnwood group and its connection to
a regional banking network of investment banks in Jordan, Morocco, Tunisia,
and Egypt, AIP aims to attract regional and international investment and
provide "best practice" experience for similar investment banking
initiatives in Algeria.
AIP will contribute importantly in developing Algeria's emerging capital
markets, said Sami Haddad, Director of IFC's Middle East and North Africa
IFC will also invest $9 million in Aldaph SPA, a joint venture company
that will make the local pharmaceutical market more competitive by manufacturing,
packaging, and marketing pharmaceutical products locally.
Aldalph will sell pharmaceutical products, such as insulin, at competitive
prices and create 235 permanent jobs in the region of Tizi Ouzou. Through
the joint venture, Aldaph will benefit from the state-of-the-art manufacturing
practices of its European partners and receive training for all Aldaph
staff, including practical training for 85 professional staff at the sponsors'
European headquarters and production facilities.
IFC's investment includes a loan of US$7.5 million and an equity investment
of about $1.5 million, representing 6.6 percent of the company's share
capital. In this first syndication for a private sector enterprise project
in Algeria, IFC is mobilizing an additional $6.5 million in loans to Aldaph
from Danish, French, and Bahraini banks.
The project is a joint venture with Laboratoires Pierre Fabre, the second
largest independent French pharmaceutical group, and Novo Nordisk, a Danish
company that is a world leader in diabetes care and insulin production.
The local partner is Groupe Saidal, the largest pharmaceutical group in
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.