The AED92m ($25m) convertible, five-year loan facility will be used by Carbon to finance the development and expansion of its petrochemical projects, including Egypt Hydrocarbon Corporation, a $550m Mining Grade Ammonium Nitrate plant and Oriental Petrochemicals, a polypropylene production plant.
The third beneficiary includes Tahrir Petrochemicals, a $7.4bn greenfield naphtha cracker, olefins production complex with associated derivative units.
Gulf Capital CEO Dr Karim El Solh said: "Carbon Holdings is set to transform the Egyptian petrochemical industry and we are pleased to be working with its visionary management team to realize this ambitious goal.
"Egypt today represents one of the most attractive investment destinations in the Middle East and Gulf Capital is eager to increase its direct investments in the country."
In addition to significantly boosting country’s overall exports, the projects will create approximately 70,000 direct and indirect jobs and strengthen industrial growth and trade flows.
Gulf Capital’s credit and mezzanine division, Gulf Credit Partnersof, head and managing director Walid Cherif said: "The financing provided by Gulf Capital allows Carbon Holdings to continue developing its projects and to create value for its shareholders without the need to seek new external equity financing."
The investment is expected to increase Gulf Capital’s exposure in the country.
Image: officials from Gulf Capital and Egypt’s Carbon during debt financing agreement signing. Photo: courtesy of GulfCapital.
