Egypt’s Carbon Holdings, a petrochemical producer, has received a $25million funding boost from the World Bank’s private investment arm, International Finance Corp.
The investment is the second participation in a $75 million five-year convertible loan structured by Investbridge Capital.
The Washington-based lender plans to put about $500 million a year in Egypt over the next four years with most of the money going to power and renewable energy projects.
The IFC believes the potential opportunities are worth the risk of investing in the country, which is beset by political conflict and has been targeted by home-grown jihadists.
The IFC, which promotes private businesses, has invested about $1.4 billion in Egypt since 2011 and has about $1 billion in assets in country.
Carbon Holdings is seeking financing to build a petrochemical complex that will lessen Egypt’s dependence on imports for products used in industry and to make plastics.
The complex will start operating in 2021 and process 4 million metric tons of naphtha a year to make polyethylene, polypropylene and other chemicals.
Carbon Holdings is seeking about $5 billion from lenders including U.S., U.K. and Italian export credit agencies for the complex.
Carbon Holdings chief executive Basil El-Baz, said: “We feel privileged by this demonstration of support and confidence from a world-class institution like IFC. The growth capital financing provided by IFC illustrates the strength of Carbon Holdings’ reputation and allows us to further develop projects which will create jobs, and support the industrial sector in Egypt.”
Carbon Holdings will be one of the largest petrochemicals developers and operators in Egypt. The new project is expected to create 20,000 job opportunities, employ more than 3,000 technicians and engineers during operations and produce another 25,000 to 50,000 direct and indirect jobs in the related industries.
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