Orascom Construction Industries Private Placement

completed

OCI operates three main business lines: (i) construction, providing civil and electro-mechanical engineering and construction services for major projects in Egypt and the MENA region; (ii) building materials, comprising manufacturing of basic and specialized construction related products (cement, cement bags and packaging, ready mixed concrete, concrete pipes, steel structures, aluminum and glass curtain walling, paints coatings and industrial gases); and (iii) infrastructure, consisting mainly of the development of an industrial park and the adjacent port facility, and a minority shareholding in a natural gas distribution business.The proposed IFC financing will be in the form of a corporate loan to OCI for financing its investment program in the areas of building materials and infrastructure and to strengthen its balance sheet. The proposed investment program is expected to: (i) create over 200 new jobs in both Egypt and Algeria; (ii) enhance productivity at a newly privatized entity producing gypsum, transforming it into an efficiency driven entity under private sector ownership; and (iii) upgrade technical skills for the employees of a newly established cement plant in Algeria.The IFC role will: (i) mobilize scarce long term financing; (ii) facilitate access of the company to a pool of international investors with long term perspective, which wouldn''t have been easy otherwise; and (iii) assure compliance with corporate disclosure standards and with environmental and social requirements.