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Washington, D.C., July 20, 2010—
IFC, a member of the World Bank Group, has agreed to invest $20 million in Metito Utilities Limited to support access to basic water supply and sanitation services in water-stressed regions of China and the Middle East and North Africa.
The deal, structured by IFC and NBK Capital - GSC Mezzanine Fund I, is the first of its kind in the Middle East. NBK Capital also plans to invest $20 million in Metito Utilities, helping strengthen the company’s capital structure.
The investment promotes private sector participation in financing the expansion, rehabilitation, and maintenance of water and wastewater treatment projects in China and the Middle East and North Africa. This will help reduce the contamination of local water resources through the discharge of untreated water.
“This unique deal confirms the strength of Metito’s business model and supports our progress toward becoming a listed company, demonstrating the expansion of our investor base,” said Rami Ghandour, Executive Director of Metito Utilities. “IFC has been an excellent supporter of Metito in the past and was key in developing the structure of this investment. NBK Capital brings expertise as the only dedicated mezzanine fund in the Middle East and North Africa region.”
Metito Utilities has been an IFC client since 2007. The company is already active in the water reuse sector in the Middle East and North Africa and China.
Michael Essex, IFC Director for the Middle East and North Africa, said, “We are very pleased to expand our partnership with Metito to capitalize on growth opportunities in the water sector in China and the Middle East and North Africa. Reducing the water supply-demand imbalance is one of IFC’s key priorities in these areas.”
IFC’s support for Metito Utilities, an established regional player, underscores the commitment to developing the water sector, a priority focus for China and the Middle East. IFC has been working to extend reach and access, while reducing scarcity in the water sector since 1993.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totalled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
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About Metito Utilities
Metito Utilities is part of Metito Group. Founded in 1958, Metito is a leading international company that provides desalination, water supply, and wastewater treatment projects and services. It serves a global client base in Africa, Asia, and Europe with engineering, design, plant manufacturing, and chemical production facilities in the United Arab Emirates. Metito Utilities is responsible for managing the Metito Group’s investment in water and wastewater assets, particularly build-own-operate, transfer-own-operate, and full concessions projects. For more information, visit
www.metito.com
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