IFC mulls $100m loan for Egypt’s Middle East Glass Manufacturing Co

The International Finance Corporation (IFC), a member of the World Bank Group, is considering a loan of $100 million to refinance the project of Middle East Glass Manufacturing Company (MEG), a manufacturer of glass containers from Egypt, according to a disclosure. 

The project includes three major furnace rebuilds, resource efficiency improvements and the operational streamlining of the cullet processing operation. In addition to IFC funds of $100 million, MEG will contribute up to $26 million from internal cash generation, bringing the total project cost to $126 million. MEG will use $67 million for the refinancing and $59 million for the capex portion. 

IFC anticipates that the Project will have a strong effect on the competitiveness of the regional glass market mainly across North and East Africa, which is facing competition from global players, by improving efficiency and quality standards, and introducing product diversity,”IFC said in the disclosure. 

Founded in 1983, Cairo-headquartered MEG targets both the local and overseas markets and currently exports to about 50 countries. 

The company is 51.4 per cent owned by MENA Glass Holding, a Cayman-based investment vehicle for Abdulgalil Besher while 35.9 per cent owned by Gulf Capital, one of the largest alternative investment firms in the Middle East, managing $4 billion across ten funds and investment vehicles. 

In April, IFC extended up to $100 million as a debt investment in MEG. The company said it would deploy the proceeds to boost its production capacity and expand its international footprint. 

In Egypt, IFC’s looks at investing in companies that have strong export potential. During the 2018 financial year, IFC’s commitment to Egypt topped $1.2 billion.