02 Oct 2013

HADEF & PARTNERS ADVISE METITO ON A NEW CORPORATE LEVEL LOAN FROM THE INTERNATIONAL FINANCE CORPORATION (IFC)

Authored by: Hadef & Partners Press Office

HADEF & PARTNERS ADVISE METITO ON A NEW CORPORATE LEVEL LOAN FROM THE INTERNATIONAL FINANCE CORPORATION (IFC)

Caroline O’Hare and Alan Rodgers of Hadef & Partners Banking & Finance team recently advised Metito on the documentation of a new $70 million financing from IFC, a member of the World Bank Group, and DEG – Deutsche Investitions and Entwicklungsgesellschaft mbH.  The loans will help increase water efficiency and improve wastewater treatment in the Middle East and North Africa (MENA) by increasing the availability of drinking water, improving wastewater treatment infrastructure, reducing waste costs, and decreasing health risks to local communities.

“We are grateful to IFC and DEG for providing such long tenor debt at the corporate level in very challenging market conditions,” said Rami Ghandour, Metito Managing Director. “This loan will enable Metito to continue to provide quality water treatment solutions that will help develop the water and wastewater sector in arid regions. It will also allow us to pursue further growth, both organically and inorganically, in emerging and frontier markets.”

Peter Thimme, Director for Europe, the Middle East and Central Asia at DEG said: “The protection of scarce water resources is a matter of particular concern to DEG. By making available long-term capital, which is limited on the market, we enable Metito to invest in future markets in the Middle East and North Africa.”

Metito, a global provider of water management solutions headquartered in Dubai, is already well placed to develop the water sector in MENA and China and is expanding further into emerging markets where water scarcity is a major concern. MENA has poor rates of wastewater recycling, but with greater urbanization and a growing population, re-using water is becoming increasingly important, especially for industry. Providing long-term finance to the private sector is necessary to meet the demands of water-scarce regions and countries.

“Water scarcity is a growing concern in MENA and this investment will help address that problem,” said Dimitris Tsitsiragos, IFC Vice President for Europe, Central Asia, the Middle East and North Africa. “With this investment in Metito, IFC is supporting the continued growth of one of the key players in this sector. This investment is also part of IFC’s efforts to promote cross-border investments within MENA and bolster the region’s economic integration with the rest of the world.”

IFC’s support for Metito is part of a strategic priority to help companies expand into emerging markets to transfer knowledge and expertise. IFC's strategy in MENA is focused on promoting South-South investments and has facilitated around $5.3 billion of investments in the past 10 years. The working relationship with Metito began in 2007, when IFC made an equity investment in the company. IFC has been working to extend provision and access in the water sector, while reducing scarcity, since 1993.
 
Our picture shows Caroline O’Hare and Alan Rodgers of Hadef & Partners Banking & Finance team joining their clients Metito, represented by CEO Mutaz Ghandour, Managing Director Rami Ghandour, Group Finance Controller Sanjiv Banerji, Group Finance Manager Kishore Krishnaswamy and Group Legal Advisor Mohammad Abusinn, attending the signing ceremony with IFC and DEG at IFC’s offices in Dubai.
 
Caroline O’Hare commented “This was an interesting and challenging financing which gave rise to some unusual considerations, and we are pleased that we were able to assist our clients in successfully negotiating a facility which will enable them to progress their regional and international development plans in the medium term.”
 
Mohammad Abusinn, Group Legal Advisor for Metito also commented “we were very pleased with the responsive and professional service we received from the Hadef banking team led by Caroline and found their in-depth experience of handling international financing transactions invaluable in helping to steer through some difficult issues and bring the transactions to a successful closure. We certainly look forward to working with this team in any similar future transactions”.