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 governance issues.
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.
About IFC
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
.
