The International Finance Corporation (IFC), a member of the World Bank Group, announced on Monday it is providing up to $100m in financing to the Middle East Glass Manufacturing Company (MEG), one of Egypt’s leading makers of glass containers.
The financing is designed to support the firm’s capital expenditure programme, create new jobs, and boost Egypt’s manufacturing sector.
IFC’s debt financing package will help MEG ramp up container production, which are used by a variety of companies, such as beverage companies and pharmaceutical firms. This will help MEG to expand and continue to grow its annual exports.
Moreover, it will also help the company to expand locally, and create and preserve thousands of jobs.
Besides the financing package, the IFC’s advisory services arm will help MEG to substantially reduce its energy consumption and greenhouse gas emissions. That is part of the IFC efforts to bolster resources efficiency in the manufacturing sector and support companies internationally.
During the signing ceremony of the financing deal, the IFC Global Director for Manufacturing, Agribusiness, and Services, Tomasz Telma, stated that the IFC’s strategy in Egypt focuses on investing in companies with strong export potential, which boost the local economy and create more jobs.
“Supporting a leading Egyptian manufacturer, like MEG, will ensure it continues to contribute to Egypt’s economic development,” he added.
Nabil Ismail, vice president of Gulf Capital, the main stakeholder in MEG, said on behalf of Karim El Solh, CEO of Gulf Capital, said: “We have worked closely with the IFC across a number of transactions and most recently, financing MEG’s expansion plans,”
He added that the company’s expansion strategy includes new areas and new production lines which has firmly positioned MEG as a leader in the glass market in the Middle East and Africa.
“The company today has a strong management team and is well positioned to continue its impressive growth trajectory,” he added.
He assured that this investment from the IFC highlights the increasing confidence in the broader Egyptian economy and the resurgence of foreign direct investments into the country.