MIGA Insures Packaging Plant in Egypt
South-South investment will create jobs, have demonstration effect for FDI in country
Washington, August 12, 2014 – The Multilateral Investment Guarantee Agency (MIGA)—the political risk insurance and credit enhancement arm of the World Bank Group—announced its collaboration with the Turkish company Elif Global for the international expansion of its packaging business in Egypt. MIGA is insuring Elif’s investments to build a new packaging plant near Cairo that will create hundreds of jobs and have an important demonstration effect for investment.
MIGA is providing guarantees of $26.4 million covering an equity investment by Elif Global Ambalaj San. ve Tic. A.S. (Elif Global) in Elif Global Packaging S.A.E. in Egypt and loan guarantees from Elif Global to the project lenders. MIGA is covering the investments against the risks of transfer restriction, expropriation, and war and civil disturbance. The World Bank Group’s IFC has also supported the plant’s construction through loans.
Elif is a global supplier in the packaging industry, providing flexible packaging solutions for food and beverage, home care and cleaning, and personal care products. Elif serves global companies with leading brands in more than 50 countries around the world.
As a greenfield investment in the manufacturing sector, the project will contribute significantly to Egypt’s economy and will be the hub of Middle East and African operations of the company. The project will create nearly 300 local direct jobs, support 200 to 300 indirect jobs, and create nearly 400 jobs during the project design and construction phase. The company will use its state-of-the-art technology and know-how—providing training and knowledge transfer to local workers.
“We’re pleased to insure this investment that sends a positive signal to other private investors considering investments in Egypt during these challenging times,” said Keiko Honda, MIGA’s Executive Vice President and CEO.
Elif Group’s CEO Selcuk K. Yarangumelioglu said, “Especially as our plant in Egypt will be our first constructed outside of Turkey, the availability of MIGA’s insurance was very important for our investment.” He added, “We also appreciate the support from both the political risk insurance and lending arms of the World Bank Group—MIGA and IFC—to be able to move solidly forward in this project.”
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
Mallory Saleson, MIGA
Tel: +1 202 473-0844
Rebecca Post, MIGA
Tel: +1 202-473-1964
Cara Santos Pianesi, MIGA