Published: November 15, 2011
US$150mn will help to develop region following Arab Spring.
Citadel Capital, a Middle East and Africa-focused private equity firm, has received US$150mn of funding from the Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution.
The funds will be used to invest across the region. US$125mn will be allocated for investments in Egypt.
The deal was agreed a month after Citadel raised US$175.6mn through a rights issue, giving the firm US$325mn of long-term capital.
Ahmed Heikal, Citadel’s chairman and founder, said the funding has helped to put the firm in a robust financial position for 2012.
OPIC president and chief executive Elizabeth Littlefield added that the funding will support the economic and political development of the region following the Arab Spring. “It addresses the shortage of credit in Egypt, where investment in important infrastructure sectors has been stymied by political uncertainty,” she said.
This is the second investment the firm has received from OPIC in 16 months. In July 2010, it secured US$100mn of funding from the institution.
In addition to the funds approved by OPIC and the rights issue, Citadel has raised US$319.3mn in equity and debt since January. Its investors include the International Finance Corporation, the African Development Bank, Dutch development bank FMO, German development finance institution DEG and the European Investment Bank.
Citadel manages US$8.7bn of investments across 15 countries in industries including mining, cement, transport, food and energy. Since 2004, Citadel has generated returns of more than US$2.2bn from US$650mn of investments.