Washington, D.C., February 27, 2002
—The International Finance Corporation, the private sector development arm of the World Bank, signed today agreements to provide financing of up to US$55.5 million to Orascom Construction Industries S.A.E. (“OCI”), a leading Egyptian construction company. The investment will be used to support the growth and strategic development of the company in the building materials and infrastructure sectors both in Egypt and the Middle East/North Africa region.
Mr. Sami Haddad, Director of IFC’s Middle East and North Africa Department, said: “We expect this transaction to have a positive impact on private sector development in Egypt by providing financial support and expanding the sources of funding for an important Egyptian company and employer.”
IFC is providing a loan for its own account of up to $25 million and arranging a syndicated loan of up to $30.5 million for the account of participant banks. Citibank N.A.(Bahrain Branch), Barclays Bank PLC and Natexis Banque Populaires are participating in the syndicated loan. The investment marks the first time in several years that a construction/industrial company in Egypt has raised long-term loan funding on the international market.
OCI’s Chief Executive Officer, Mr. Nassef Sawiris, commented: “IFC was instrumental in mobilizing the term financing we need from the international banking community at a time when banks are cautious about lending long term to emerging markets borrowers.”
IFC’s mission is to promote sustainable private sector investment in developing 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, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
