Carbon Holdings - Convertible Loan (EBRD-48698)

Countries
  • Egypt
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 21, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Egyptian Government
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 11.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 168.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jun 29, 2017

Disclosed by Bank Apr 5, 2017


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Project Description
The Project is a convertible loan to Carbon Holdings (CH), which aims to support CH's plans to develop projects in the petrochemicals industry in Egypt. The EBRD funds will support CH's development of projects in the petrochemical industry in Egypt, through the financing of one of CH's operating companies - Egyptian Hydrocarbon Corporation (EHC, or the Company). The transition impact of the proposed Project derives from (i) increased competition in the sector - the EHC plant is currently the main licensed MGAN operation in Egypt. The start and ramp-up of EHC's plant will encourage competition in the sector, which has only two key competitors in the region, and (ii) improve standards-setting that will go beyond local levels in several dimensions - the Project will contribute to improving environmental, health and safety standards; energy efficiency standards; and sustainability reporting - all to a level beyond current local industry practice.
Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information
ACCOUNTABILITY MECHANISM OF EBRD The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.