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Paris, December 22, 2011—
IFC, a member of the World Bank Group, is providing a $50 million loan to cement and construction materials supplier Lafarge to support the French company’s cement subsidiary in northern Iraq and spur economic recovery in the post-conflict country.
IFC’s loan to Bazian Cement Company is supplemented by an additional $20 million loan by Proparco, a development financial institution funded by private shareholders and the Agence Francaise de Développement.
As Iraq emerges from more than two decades of conflict, construction needs are great, with large investments expected in key projects such as housing, schools and roads. The loan will help increase the supply of quality cement and reduce the acute domestic supply gap. IFC and Proparco also will work with the company to implement an environmental and social strategy to help align the company with international sustainability standards.
“This financing will help address the cement shortage that the country urgently needs to build key infrastructure, and will play a catalytic role in attracting other potential foreign investors into other sectors in Iraq, increasing much-needed foreign direct investment into the country,” said Dimitris Tsitsiragos, IFC Vice President for Eastern and Southern Europe, Central Asia, Middle East and North Africa.
This year, IFC has committed $2 billion worth of investments, including mobilization, in the Middle East and North Africa. Many of those initiatives are designed to spur economic development and promote investment in countries whose economies have struggled in the wake of recent political developments. Over the next three to four years IFC expects to invest up to $6 billion, including $2 billion in mobilization, in the Middle East and North Africa.
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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