Trade Arabia reported that Egypt based EFG Hermes has partnered with InfraMed, a leading infrastructure fund in the Mena region to invest USD 100 million in Egyptian Refining Company.
A landmark USD 3.7 billion refining project developed by Cairo based private equity firm Citadel Capital, ERC is aimed at helping Egypt halve its diesel import needs, resulting in over USD 300 million in additional direct benefits to the state annually and spur job creation.
Egyptian Fund Management Group said that the investment was made through InfraMed's wholly owned subsidiary InfraRev Holding into Orient Investment Properties, a holding company with a majority position in ERC. This equity injection represents an effective ownership of 15.6% in Orient and in turn, 7.5% in ERC.
Besides Egypt's EFG Hermes, the InfraMed is supported by 4 key institutional investors Caisse des Dépôts et Consignations, Cassa Depositi e Prestiti, the European Investment Bank, Caisse de Dépôt et de Gestion in Morocco. This project marks EFMG and InfraMed’s first investment in Egypt.
Mr Karim Moussa MD of EFG Hermes said that it demonstrates EFMG’s outstanding ability to originate, analyse and execute deals for InfraMed in Egypt, even during periods of market volatility. In partnership with InfraMed, we are supporting Egypt’s energy sector through a key investment in ERC a project developed by Citadel Capital and which reached financial close on June 14th 2012
Mr Moussa said that Egypt is in need of substantial investments to build and upgrade its infrastructure. The financial close of ERC is a major milestone for the development of the country's energy sector. InfraMed's investment in ERC underlines its strong commitment to Egypt.
Mr Bakr Abdel Wahab director of EFG Hermes said that “This transaction demonstrates our ability to originate and execute large and complex infrastructure deals in Egypt and the region. Further, it reinforces our position as a leading infrastructure player and investor, capable of partnering with key financial and industrial sponsors.”
Source - Trade Arabia
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