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07-May-2010 | ||||||
GulfMerger Advises City Group Company KSC on a USD30,000,000 Funding Deal with IFC | ||||||
GulfMerger, the Middle East's leading middle-market financial advisory firm, announced today a USD30,000,000 funding deal between City Group Company KSC (City Group) and IFC, a member of the World Bank Group. GulfMerger acted as sole financial adviser to City Group on this transaction. The USD30,000,000 senior loan provided by IFC will assist City Group in the acquisition funding of major stakes in the Comprehensive Multiple Transportations Company in Jordan, and a further public transport company based in the Levant region. The investment, coupled with City Group's expertise, will help improve and increase access to transportation service levels in both countries and facilitate the acquisition of fuel efficient buses, which is expected to save up to 330,000 tons of carbon dioxide annually. Based in Kuwait, City Group is the region's leading private-sector public transport company with a fleet of over 1,000 buses. City Group is listed on the Kuwait Stock Exchange with a market capitalization of over USD200 million. Richard Woods, City Group's CEO, commenting at the signing at the DIFC in Dubai said: "This deal will help us improve and develop the level of public transportation in the region, increasing efficiency and helping to decrease traffic and travel time getting to and from destinations. It is a crucial first step in the City Group's plan to become the leading provider of public transport in the Middle East with a combined fleet of over 3,000 buses by 2015. City Group is committed to working with IFC, ensuring that all newly acquired buses will be environmentally friendly, helping to decrease pollution and overall vehicle emissions in the markets they operate." Michael Essex, IFC's Director of the Middle East and North Africa Department said: "The growing population in the region is contributing to increased urban congestion and pollution. We hope to play a catalyst role with this project to help focus attention on such projects and boost investments in the transportation sector to meet the growing demands for such services." GulfMerger advised City Group on the IFC loan. Yann Pavie, Chief Executive Officer, said "GulfMerger is advising City Group on regional acquisitions, and as part of a strategy to secure debt funding for expansion plans, GulfMerger approached IFC and advised on deal terms. IFC brings to City Group a long-term partner confirming City Group's expansion strategy in the Middle East. This debt transaction is the first that IFC concludes in the public transportation sector in the MENA region and also marks the entry of GulfMerger into debt finance advisory in the Middle East". About GulfMerger: | ||||||
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