IFC invests in Algeria's pharmaceutical and banking sectors
Algeria, Economics, 6/14/2000

The International Finance Corporation "IFC" has concluded two transactions to encourage investments in Algeria's banking and manufacturing sectors, says a statement of IFC.

As part of its strategy to reinforce the financial sector as a vehicle to development, IFC will acquire a 20% stake in Algiers Investment Partnership (AIP), the first specialized, full-service investment bank in Algeria. AIP will provide investment banking services including corporate finance, private and public placement of debt and equity issues, research and brokerage, and fund management activities.

The Cairwood Group, a U.S. international investment management company, will hold 60% of AIP's share capital. The local management team will, together, hold 20% of the share capital.

AIP will contribute in developing Algeria's emerging capital markets, said Sami Haddad Director of IFC's Middle East and North Africa Department.

IFC will also invest $ 89 million in "Aldaph," a joint venture meant to upgrade the competitiveness of the local pharmaceutical market by manufacturing, packaging, and marketing pharmaceutical products locally.

The enterprise will sell pharmaceutical products at competitive prices and create 235 permanent jobs in the region of Tizi Ouzou. Through the joint venture, Aldaph will benefit from French and Danish state-of-the-art manufacturing practices and receive staff training.

IFC's investment includes a loan of $ 7.5 million and an equity investment of about $ 1.5 million, representing 6.6% of the company's share capital. In this first syndication for a private sector enterprise project in Algeria, IFC is mobilizing an additional $ 6.5 million in loans to Aldaph from Danish, French, and Bahraini banks.

The project is a joint venture with Laboratoires Pierre Fabre, the second largest independent French pharmaceutical group, and Novo Nordisk, a Danish company that is a world leader in diabetes care and insulin production. The local partner is Groupe Saidal, the largest pharmaceutical group in Algeria.

The IFC, a body of the World Bank Group, promotes private sector investment in developing countries, which will reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.

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