The World Bank Group’s political risk insurance and credit enhancement arm Multilateral Investment Guarantee Agency (MIGA) will work in collaboration with Turkish flexible packaging company Elif Global to expand the latter’s packaging business in Egypt.
MIGA is insuring the firm's investments to construct a new packaging facility near Cairo.
MIGA is offering $26.4m guarantee, which covers 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 lenders of the project.
The insurance coverage for the investments includes on the risks of transfer restriction, expropriation, and war and civil disturbance.
The World Bank Group's IFC has offered loans for the construction of the plant.
Elif is a global supplier and provides packaging solutions for sectors like food, beverage, home care, cleaning and personal care products. It provides its products to about 50 companies worldwide.
Close to 300 local direct jobs are expected to be created from the project, which will contribute to Egypt's economy and will serve as the hub for the company's Middle East and African operations.
MIGA executive vice president and CEO said: "We're pleased to insure this investment that sends a positive signal to other private investors considering investments in Egypt during these challenging times."
Elif Group's CEO Selcuk K Yarangumelioglu noted that as the plant in Egypt will be the company's first constructed outside of Turkey and the availability of MIGA's insurance is important for its investment.
"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," Yarangumelioglu added.
