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Overview

BOC contributes to a $30 million USD syndicated loan to Metito for water treatment projects

Commitments (Constant USD, 2023)$15,383,298
Commitment Year•2014Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesSector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 23, 2014

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Intergovernmental Organizations

  • International Finance Corporation (IFC)

Receiving agencies

Private Sector

  • Metito

Loan description

2014 syndicated $30 million USD loan from BoC and others to Metito for water treatment projects in the United Arab Emirates

Interest type•Unknown

Narrative

Full Description

Project narrative

On April 23, 2014, Bank of China (BOC) and the International Finance Corporation (IFC) entered into a $30 million USD syndicated loan agreement with Metito — a Dubai-headquartered leading water management solution provider — for the development of its water treatment projects. The purpose of the loan was to support the development of Metito's water treatment projects throughout the regions of Middle East, North Africa (MENA), and Asia. Metito was reportedly the first company to obtain long-term financing from BOC as part of the IFC ‘B Loan program’, a syndicated loan structure that introduces new banking relationships to the borrower.

Staff comments

1. Metito was founded by Farouk Ghandour and later joined by his brother Mutaz Ghandour, two Lebanese entrepreneurs, in 1958 as the first company in the Middle East to specialize in water and wastewater treatment services. In November 2006, the Ghandour family sold a majority stake of the Company to Gulf Capital PSJC, a private equity group based in the United Arab Emirates. In October 2007, IFC purchased an equity stake in the Company. The current shareholding structure is: 56% to Gulf Capital, 38% to the Ghandour Family, and 6% to IFC. 2. The individual contributions of BOC and IFC to this $30 million USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of the BOC by assuming that both lenders contributed an equal amount ($15,000,000 USD) to the loan syndicate. 3. Metito is the leading provider of intelligent water management solutions in emerging markets, with operations covering three business areas: design and build, specialty chemicals, and utilities. With over 50 years of operational experience, the group provides customized, comprehensive and advanced solutions across the industry. With a mission to sustain the world’s water resources, Metito provides effective water management and treatment systems that can reconcile an ever growing water demand and dwindling natural resources. Committed to a cleaner environment, Metito uses its expertise to provide millions of people across the globe with clean and safe water. Metito is at the forefront of the water and wastewater industry with a current global project portfolio in excess of $1 billion USD, and over 2,500 employees.