Dammam, Saudi Arabia: The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, has announced signing a financial structuring mandate with Suez Company for Methanol Derivatives to finance the development of a formaldehyde and derivatives project in Damietta, Egypt. The total project cost is estimated at USD $60 million. The amount of planned debt financing is expected to be worth between USD$35 and USD$40 Million.
The plant production is aimed to supply the local market, although certain quantities will be exported in the early years.
Dr. Ahmed Ali Attiga, Chief Executive Officer of APICORP commented: “APICORP has had a long and successful presence in Egypt. Supporting all areas of the regional energy and petrochemicals industries goes to the very heart of APICORP’s approach, so today’s announcement is evidence of our continued and successful efforts to support and contribute to the stability and growth of the Egyptian economy.”
The Egyptian Minister of Petroleum, H.E. Tarek El Molla, witnessed the signing of the mandate and commented: “The project comes in line with the ministry’s strategy to diversify financing sources of oil projects to reduce the need for hard currency and push forward economic development.”
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established to foster the development of the Arab world’s oil and gas industries. The organization is owned by 10 Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC). APICORP makes equity investments and provides project finance, trade finance, advisory and research to the energy industry.
APICORP’s headquarters are located in Dammam, in the Eastern Province of Saudi Arabia, and it also operates a Banking Branch in Manama, Bahrain.