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Asset investment company Gulf Capital has made a $25mn investment in Amak Group “Amak” through its regional Fund, “Gulf Credit Partners”.
The news has come amid Egypt’s government renewed attempts to attract foreign investment in the country’s energy sector. An auction for 22 oil and gas exploration concessions is already drawing substantial interest from international oil multinationals.
Egypt’s government has also been paying its dept off to internatinal oil and gas companies with BG Group receiving its first arrears payment of $350mn earlier this week. Last summer it made an agreement to pay off all of its arrears by 2017, which is estimated to be between $2 and $3bn.
But meanwhile demand is expected to increase from 34.8mn tons oil equivalent (toe) in 2013 to 45.5m toe in 2020. Over the same period, it is estimated that shortage of hydrocarbons in the country will grow from 657, 000 barrels oil equivalent (boe) per year to 28.2mn boe/year.
Dr. Karim El Solh, CEO of Gulf Capital, said: “Gulf Credit Partners’ investment will help Amak continue its strong growth at an exciting time for Egypt’s revitalised oil and gas sector. Amak’s strong position in the Egyptian oil and gas service sector, as well as its ambitious growth strategy and experienced management team, are strongly aligned with our Fund’s investment strategy. Gulf Capital is proud of demonstrating its confidence in the Egyptian economy by making several investments in Egypt this year through both its private equity and credit businesses.”
Ayman Abbas, founder of Amak, said: “This institutional investment from Gulf Capital will strengthen Amak’s capital structure, allow us to fund the rapid growth of the Company and help improve overall corporate governance, all vital components to the continued success of Amak. We are glad to partner with such a leading alternative asset manager in order to achieve our ambitious growth plans.”
Walid Cherif, managing director of Gulf Credit Partners, stated: “We are delighted to team up with Amak, which has achieved significant growth over the last years to become a main player in upstream oil & gas services in Egypt. We are also thrilled with this seventh investment of the Fund and its success in deploying over 70% of its capital in thriving and fast growing businesses. Our investment in Amak represents a new milestone for the Fund as we further diversify our portfolio by geography and industries. Gulf Credit Partners is today invested in some of the fastest growing and most defensive industries across the region, including healthcare, education, power and oil and gas services.”
Dr. Mohamed Farouk, chairman and CEO of Amak said: “Gulf Capital has shown great flexibility in tailoring a unique financing solution that meets our strategic growth needs. This institutional investment will assist Amak in achieving its target of becoming the leading provider of integrated oil and gas services in Egypt”.
The Egypt-based Amak provides integrated petroleum and drilling services to the onshore and offshore domestic market and multinational oil companies. Gulf Credit Partners is the credit and mezzanine business of Gulf Capital which provides financing and growth capital to fast growing companies in the Middle East, North Africa and Turkey (MENAT).
