The IFC announced a $20 million equity investment in Hassan Allam Holding, one of Egypt’s largest private construction companies, last week, to support both infrastructure development and promote job creation in the North African country.
While precise terms of the transaction were not disclosed, earlier in the year the development finance institution’s board approved a financing package of up to $30 million in debt and equity/quasi equity in the company. At the time, the Summary of Investment Information posted on the DFI’s website noted that the construction group had plans to expand its equipment fleet and related facilities as well as take partial ownership stakes in several long-term infrastructure projects in Egypt.
Hassan Allam Holding employs more than 16,000 people and specializes in the construction of large-scale infrastructure projects such as power plants, roads and water treatment plants. The investment will help the company meet the demands created by the chronic lack of key infrastructure facilities and help spur further job creation.
“Infrastructure is the foundation on which economies—and societies—are built. Without roads, power plants and other infrastructure, countries are unable to spur economic growth and fight poverty,” said Philippe Le Houérou, IFC’s Executive Vice President and CEO. “This partnership will help address Egypt’s infrastructure needs, boost employment and unlock the country’s economic potential.”
The investment is part of the World Bank Group’s strategy in Egypt to support private industries with the potential to create jobs. Between fiscal years 2011 and 2016, the value of IFC’s investments and financing catalyzed from other investors has reached almost $1.5 billion in Egypt.