Published: May 18, 2010
Firm plans to attract US$40mn for cement plant investment.
MerchantBridge, a foreign direct investor based in London, aims to attract up to US$40mn of UK investment into Iraq.
Alongside cement company Lafarge, MerchantBridge has been awarded an existing cement plant under a 15-year lease in the Kerbala Governate by the Iraqi Ministry of Industry and Minerals. The plant is operating below capacity and will need a rehabilitation programme worth US$200mn.
Other investors already backing the project include the International Finance Corporation and France’s Proparco.
“Similar to Saudi Arabia and the rest of the GCC in the previous decade, Iraq represents a unique investment opportunity and despite appearances is definitely open for business,” said Eric le Blan, MerchantBridge’s chief operating officer. “Whilst other European countries such as France and Italy have recognised its huge potential, the UK’s limited presence is noticeable. We are going to change that.”
Le Blan and colleagues will target hedge funds, private equity houses and other institutional investors in the UK.