Saudi-based Swicorp Joussour has announced that its unit Eastern Industrial Company (EICO) has raised SAR 592 million (USD 158 million) to partially fund its corrosion resistant glass fiber production…
Saudi-based Swicorp Joussour has announced that its unit Eastern Industrial Company (EICO) has raised SAR 592 million (USD 158 million) to partially fund its corrosion resistant glass fiber production plant project in Jubail Industrial City. EICO is 51% owned by Joussour, a Saudi joint stock company managed by Swicorp with a capital of SAR 2.67 billion (USD 712 million). “The plant will be the largest-of-its-kind in the region and will have an annual production capacity of 60,000 tonnes with a plan to double output to 120,000 tons in near future,” said Faysal Hamza, managing director at Swicorp Private Equity and EICO. He added that EICO had taken delivery of most of the plant“s equipment and machinery and has completed all civil works. According to Hamza, Joussour has secured all permits and licences including an advantageous land location in the First Industrial Zone in Jubail, approval from the Saudi Electricity Company, natural gas allocation from Saudi Aramco, in addition to oxygen from Sabic“s National Industrial Gases Company for its furnaces. “The financing package comprises a SAR 200 million (USD 53 million) medium term facility from the Saudi Industrial Development Fund (SIDF), as well as SAR 242 million (USD 65 million) medium term Islamic financing facility and a SAR 150 million (USD 40 million) Islamic bridge facility from Bank Al Jazira to bridge the SIDF financing facility.” The financing structure provides EICO with a flexible and cost effective funding base,” said Mohamed Wahby, director at Swicorp Private Equity and EICO board member. “EICO aims to produce a range of corrosion resistant E-CR glass fiber for use in applications that span infrastructure, renewable energy, automotive, marine, aerospace, and recreational uses.” He also said that CR glass fiber has several differentiating advantages over conventional E-Glass in terms of corrosion resistance, mechanical properties, and environmental footprint. Hamza said EICO had a very promising future in light of the infrastructure boom in the region, identified by Joussour in 2007. “Joussour provides continuous support and strategic guidance to its portfolio companies to enable them to achieve their full potential,” he added. Swicorp Financial Advisory acted as the exclusive advisor to EICO in relation to the facilities provided by Bank Al Jazira. Swicorp is a leading corporate finance advisory, private equity and principal investment firm with a specific regional focus on the Mena region.