Alternative lender, Gulf Capital signed an AED 92 million ($25 million; €23 million) five-year convertible loan with Carbon Holdings, Egypt’s largest petrochemicals holding company. The facility will support three of Carbon Holdings’ projects in Ain Al Sokhna, on the Suez Canal in Egypt, the Abu Dhabi-based lender announced.
Gulf Capital’s GC Credit Opportunities Fund I will fund the transaction which will back the development and expansion of Egypt Hydrocarbon Corporation, Oriental Petrochemicals Corporation and Tahrir Petrochemicals Corporation.
“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,” said Dr Karim El Solh, chief executive officer of Gulf Capital. The firm is keen to increase its exposure to the fast-growing Egyptian economy, he added.
The Carbon Holdings projects are expected to increase the country’s overall exports and create approximately 70,000 direct and indirect jobs, according to the statement from Gulf Capital.
Egypt Hydrocarbon Corporation is a $550 million mining grade ammonium nitrate plant. Oriental Petrochemicals Corporation is a polypropylene production plant acquired by Carbon Holdings in 2012 while Tahrir Petrochemicals Corporation is a $7.4 billion greenfield naphtha cracker and olefins production complex with associated derivative units. The main $4 billion debt financing for the Tahrir Petrochemicals Corporation will be provided by a club of export credit agencies, Bloomberg reported citing comments by Basil El-Baz, chairman and chief executive of Carbon Holdings.
Commenting on the Gulf Capital financing, El-Baz said: “We believe that the industrial sector in Egypt presents tremendous growth opportunities. We may even be witnessing the beginning of a proper industrial revolution, driven by major investments in basic product manufacturing that will cascade into locally produced finished goods which will be sold locally to a massive domestic consumer market or exported internationally.”
Established in 2006, Gulf Capital manages over $3.3 billion of assets across seven funds and investment vehicles.