Photo copyright Gulf Capital
Photo copyright Gulf Capital

Carbon Holdings, Egypt's largest petrochemicals holding company, has entered into a $25 million debt financing deal with investment firm Gulf Capital.

The five-year loan facility will be used by Carbon Holdings to finance the development and expansion of three of its petrochemical projects, Gulf Capital said on May 25. They include Egypt Hydrocarbon Corporation, a $550 million mining grade ammonium nitrate plant; Oriental Petrochemicals Corporation, a polypropylene production plant; and Tahrir Petrochemicals Corporation, a $7.4 billion greenfield naphtha cracker and olefins production complex with associated derivative units.

Gulf Capital CEO Dr. Karim El Solh said: "We are excited about the growth prospects in Egypt and are keen to increase our investments there.

"We are particularly thrilled to be working with Carbon Holdings which is a key force in the modern industrial development of Egypt and whose projects are expected to increase the country's overall exports significantly, create approximately 70,000 direct and indirect jobs and boost industrial growth and trade flows."

Walid Cherif, managing director and head of Gulf Credit Partners, the credit and mezzanine division of Gulf Capital, said that Carbon Holdings is on track to become one of the leading petrochemical players in the world.

"The financing provided by Gulf Capital allows Carbon Holdings to continue developing its projects and to create value for its shareholders without the need to seek new external equity financing," he added.