Top Egyptian group inks $20m loan deal
Cairo, February 18, 2012
Wadi Group, a leading Egyptian conglomerate, said it has signed a $20 million loan agreement with Proparco, the financing arm of the French Development Agency, to fund its expansion and growth plans in the country.
The agreement was signed in the presence of Wadi Group chairman Musa Freiji, CEO Tony Freiji and vice president and COO Ramzi Nasrallah and Proparco officials led by deputy CEO Marie-Hélène Loison.
Senior Proparco officials including Stéphanie Lanfranchi, head of corporate division, Thomas Eloy, regional representative for Middle East and Caucasus region, Sébastien Delannoy, investment officer and Jean-Pierre Marcelli, AFD country director also attended.
As per the deal, Wadi will allocate the loan to finance its strategy announced in 2011, which includes completion of the first phase of phosphate facility, completion of its investment in Nile Company for Stevedoring and Storage, expansion of its fish farm in Fayoum and the execution of the phase II of Wadi Al-Natrun olive pickling plant.
The fuding will also be used for construction of second feed mill to enhance the group’s feed production as well as the construction of its tomato concentrate production plant, said Wadi Group in a statement.
In addition to the financial loan, Proparco and Wadi Group will co-operate on multiple levels, including development programs in the areas of corporate governance, sound environmental practices, international quality standards, management and economic advancement, as well as public health and human resource policies.
“The ambition of Wadi Group management has no boundaries and is represented in the Group’s ongoing aspiration to expand its investments in the fields of agriculture, poultry and other industries,” remarked Musa Freiji.
"Wadi enjoys a solid relationship and a successful track record with financial institutions, which sends a vote of confidence in the group’s overall operations and performance," he noted.
According to him, Proparco’s approval to grant the loan to Wadi was the result of an in-depth financial and economic study of its position, which highlighted the strength and status of Wadi management, productivity and marketing performance.
"We highly value this loan, which will strengthen our long-lasting partnership and will foster new investments that will boost food supply and job creation as well as help uplift the Egyptian economy," he added.
On the loan approval, Marie-Hélène Loison said, "In the current political and economic climate, investment needs in Egypt and more particularly in the agro-industry sector, are huge. Proparco is proud to support a major agro-industry player supplying top-quality food products to the local market."
"Wadi's exemplary management of health, environmental and social issues makes it a partner of choice", she stated.
Wadi, she said, contributes to disseminating high standards in food safety, especially with regard to limiting the spread of bird flu, by supplying healthy chicks to farmers and providing veterinary support.
"Moreover, Wadi has proven its ability to successfully expand and diversify its activities based on synergies with its core business lines," she added.-TradeArabia News Service