On November 6, 2018, MIGA agreed to issue up to $16.2 million in guarantees covering equity and quasi-equity investments by Pasabahce Cam Sanayii. ve Ticaret. A.S. of Turkey (“Pasabahce Turkey”) into Pasabahce Egypt Glass Manufacturing S.A.E. in Cairo, Egypt. The guarantees are issued for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, and War and Civil Disturbance.
The project consists of an asset acquisition by Pasabahce Turkey as part of its business growth plan in the glassware sector. Investments other than assets purchased include the modernization of the plant and introduction of different production processes to improve the quality standards.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability.
The project entails the acquisition of an existing glass manufacturer and subsequent modernization and enhanced capacity of the plant via the upgrading of production equipment, adoption of technically advanced production processes and increase in quality standards. These improvements are expected to yield higher volumes of output, as well as products of higher quality, while transferring knowledge and expertise to the local workforce. The project will source certain raw materials, production inputs and services locally, supporting domestic value chains. The project’s output is mostly geared to international markets, generating revenues in foreign exchange and taking advantage of Egypt’s strategic location along trade routes, as well as the country’s suite of preferential trade agreements. It is estimated that over 600 employees will be working at the plant when fully operational, compared with less than 200 at present.