IFC provides Egypt’s PICO subsidiary with US$50mn Loan

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The International Finance Corporation (IFC), a member of the World Bank Group, is securing a US$50 million loan to Cheiron Finance Limited, a subsidiary of Egypt’s PICO International Petroleum (PIP).

The IFC announced in a statement Thursday, that the loan aims to ‘bolster energy supplies’ in Egypt.

Egypt has suffered from an acute energy crunch in the past year that has limited the production capacity of energy intensive industries such as cement, fertilisers and ceramics.

Once a net exporter of fuel, Egypt has become a net importer on the back of an energy crisis and increasing domestic consumption.

“By harnessing the country’s energy potential, we can spur economic growth and help bring opportunity to those who need it most,” said Mouayed Makhlouf, IFC Director for the Middle East and North Africa, in the statement.

The loan is part of a $200 million financing package provided by the European Bank for Reconstruction and Development and HSBC, along with the IFC.

Egypt’s PICO International Petroleum (PIP) currently holds six concessions in the country, and its affiliate Cheiron Holdings Limited (CHL) owns the Amal Development field and Zaafarana.

Source: Ahram Online