Africa Finance Corporation (AFC) is set to invest US$25 million in Egyptian petrochemicals company Carbon Holdings Ltd to help it develop an integrated large scale petrochemicals platform in Egypt to take advantage of the country’s strategic geographic location along the Suez Canal.
In addition to AFC, the International Finance Corporation and Gulf Capital are providing capital to support the expansion of Carbon Holdings’ operations.
Andrew Alli, CEO of AFC, said: “AFC prioritises investing in projects and businesses that can make a tangible impact on the people, their communities and the economy, and we believe that key to the next chapter in Africa’s growth story is investing in companies such as Carbon Holdings which deliver industrial products across a broad reaching value chain.
AFC aims to support the establishment of a robust raw materials base and ultimately the development of Egypt’s manufacturing sector, delivering long term jobs to Egypt and helping to boost Africa’s overall economic growth.
By supporting the private sector to develop new industries, including manufacturing, to create high value-add jobs for Egyptians. AFC is proud to be able to support Carbon Holdings to expand its operations and drive local employment.
Basil El-Baz, Chairman and CEO, Carbon Holdings said: ” The addition of such a pre-eminent African institution is extremely important to Carbon Holdings and will further emphasise our strategic commitment to the industrial development of not only Egypt, but to our future industrial plans in Africa.”
AFC was formed to provide specific project structuring expertise and risk capital for large-scale infrastructure projects that are needed across Africa to develop economies.
The deal was arranged by Investbridge Capital, a Dubai-based privately-owned DFSA regulated independent provider of alternative asset management and corporate advisory services.
Subsidiary companies of Carbon Holdings include Oriental Petrochemicals Company, Egypt Hydrocarbon Corporation and Tahrir Petrochemicals Corporation.
In May Last year, the International Finance Corporation (IFC) invested $25m in Carbon Holdings Limited for construction of the Tahrir Petrochemical Complex scheduled to be completed by 2019 to reduce Egypt’s dependence on imported petrochemicals.