Swicorp secures bank financing for United Sugar Company Egypt

Namely, United Sugar Company Saudi Arabia, the Savola Group, Al Muhaidib Group, Omar Kassim Alesayi Group, Tate and Lyle (UK) and Sokhna Port Development Company.

With its investment cost totaling approximately USD 107 million, the refinery once operational in the third quarter of 2007, will be capable of producing up to 600,000 metric tonnes of granulated sugar and 150,000 metric tonnes of liquid sugar. Of the USD 107 million funding required, Swicorp assisted the company in raising USD 52 million in bank financing, which is made up of two facilities, i.e. project finance facility and working capital facility. The balance USD 55 million will be contributed by its shareholders.

This project was initiated by the Savola Group as part of its strategy to expand its core businesses geographically. The main market of this new refinery, once completed, will be the Egyptian sugar market, which presently stands at 2.4 million metric tonnes, out of which 900,000 metric tonnes are imported each year. This new refinery will also export to the regional markets, namely North Africa, Middle East and Europe to capitalize on the opportunities that will surface after the imminent implementation of new regulations which will severely reduce the amount of refined sugar that the European sugar producers can export to countries outside of the European Union.

Mr. Kamal Lazaar, President of Swicorp, said "the successful conclusion of this fund raising transaction by Swicorp for United Sugar Company, a subsidiary of the Savola Group, marks another milestone in the longstanding relationship between the two companies." The other most recent project which Swicorp successfully concluded for Savola is its SR 2.4 billion rights issue, in which Swicorp acted as the financial advisor to the exercise.

Swicorp is a Swiss-headquartered investment firm with a unique track record of corporate finance transactions in MENA. Swicorp also recently received its investment banking licence for Saudi Arabia.

The Savola Group is one of Saudi Arabia's leading industrial companies with a recent market capitalization of approximately USD 17 billion. The Group's principal business units include edible oils, sugar, retail, packaging and real estate.