Release
IFC Investment to Help Boost Energy Reliability in
IFC’s equity investment of up to $50 million will help CER develop and build power projects valued at $1.5 billion in its target markets. CER is a newly formed holding company promoted by Swicorp Joussour, which has committed up to $100 million to the group. It will develop, acquire, own and operate a range of thermal and renewable power generation projects. The company has already acquired its first investment, a 20.14 percent equity stake in a 585-megawatt gas-fired combined cycle power project in
"We are pleased that IFC has made an equity investment in CER which will help us mobilize additional private investment," said Shahzad Qasim, CEO and Founder of CER. "We look forward to working with regional Investment and international investors to improve power supply in the region."
While the power sector in the company’s target countries has significant investment needs, the conditions for private investment in these markets remain difficult. The situation has been exacerbated by the current global financial crisis. IFC’s involvement will help promote intraregional investments, as a significant portion of CER’s share capital is expected to come from Gulf Cooperation Council country investors.
Nabil Triki, Head of Swicorp Private Equity, said, "IFC’s equity participation in CER is an endorsement of the company’s business plan and management team. Soaring electricity demand and new laws promoting private sector investment have created many power sector opportunities."
Anita Marangoly George, IFC Director for Infrastructure, said, "IFC is pleased to invest in a promising regional player and to lend our support for CER’s efforts in providing power to an underserved part of the world. We expect the company to play a significant role in increasing private participation in the development of power projects within the region."
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34% increase over the previous year. For more information, visit www.ifc.org.
About Swicorp
Swicorp is a financial advisory, private equity, and principal investment firm licensed by the Capital Markets Authority of Saudi Arabia to provide a comprehensive range of services to domestic and international businesses in the