Transaction details

Ethica Debt Advisory advised Vinavil Egypt, a Mapei S.p.A. subsidiary, in structuring a financing provided by the International Finance Corporation International, a member of the World Bank Group

Ethica Debt Advisory advised Vinavil Egypt for Chemicals SAE, a Mapei S.p.A. subsidiary, in the structuring of a multi-currency loan, largely in Egyptian pounds; granted by International Finance Corporation International (IFC).

Vinavil Egypt was established in 2001 and is a subsidiary of Vinavil SPA, which in turn is wholly-owned by Mapei, a global leader in the specialty construction chemicals used in infrastructure projects, including housing, underground construction, ports, and in the marine industry. The company is a three-generation family-owned businesses, founded in 1937 and headquartered in Milan, Italy. Mapei has 82 subsidiaries, 28 research and development centers, and 79 production plants in 34 countries. The company employs around 10,000 people globally, 27% of whom work in emerging markets.

IFC’s financing will help the company double its annual production of chemical binders and emulsions, which are used in paints for industrial and commercial projects. IFC is also addressing the need for local currency financing by providing the loan largely in Egyptian pounds.This will address Vinavil Egypt’s need for flexible borrowing in both Egyptian pounds and US dollars. The financing is part of IFC efforts to boost the development of Egypt’s construction industry, an important source of employment and a key economic driver. It accounts for more than 4% of Egypt’s gross domestic product and employs 12 percent of Egyptian workers. The industry is also one of the country’s fastest growing sectors, having grown by 10% in 2017.   

“The flexibility of borrowing in both Egyptian pounds and US dollars will enable our company to make long-term capital investments and support our working capital,” said Gianmaria Palazzolo, Managing Director of Vinavil Egypt. “The financing from IFC will help us expand in Egypt and become a regional exporter of specialty construction chemicals, creating jobs, especially for highly skilled workers.”  

“Supporting the development of Egypt’s construction industry is key to spurring economic growth,” said Mouayed Makhlouf, IFC Director for the Middle East and North Africa. “Local currency financing, which we plan to expand, is also vital for sustainable private sector investment. Providing the loan in Egyptian pounds ensures the currency is more accessible to local companies, which can help boost crucial industries like manufacturing and construction.”