Cairo, Egypt, June 11, 2012—
IFC, a member of the World Bank Group, has committed a $100 million loan to Orascom Construction (OC), an agreement designed to create jobs, stimulate foreign investment in Egypt and buttress the country's strategically important building sector.
The loan will help OC, a wholly-owned subsidiary of Orascom Construction Industries, expand its operations in Egypt and Iraq, boosting employment both directly and indirectly through subcontractors. The investment is an integral part of IFC’s strategic response to recent events in Egypt, a country with strong long-term potential despite recent economic setbacks.
"Securing this loan will provide Orascom Construction with the necessary capital to
expand its operations across the region," said Salman Butt, Chief Financial Officer of OCI. "We are pleased with the IFC's continued commitment to the company, as well as the country, and look forward to further developing our longstanding relationship in the future."
Mouayed Makhlouf, IFC Director for the Middle East and North Africa, said, “By supporting a group like Orascom Construction, we want to send the signal that Egypt has a long-term potential. This investment fits with our strategy of boosting confidence in Egypt's private sector, a major contributor to employment."
The construction and infrastructure sectors are major parts of the economy in the Middle East and North Africa, employing over 18 million people.
Since January 2011, IFC has committed $1.9 billion, including mobilization, in the region. Many of our investments and advisory services are designed to support economic development and promote investment in countries whose economies have struggled in the wake of recent events.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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