ICD to invest $4 million in Adritec Group International
The Islamic Corporation for the Development of the Private Sector (ICD), an affiliate of the Islamic Development Bank (IDB), on November 18, 2001 signed an agreement to invest US$4 million in Adritec Group International (AGI).
The Islamic Corporation for the Development of the Private Sector (ICD), an affiliate of the Islamic Development Bank (IDB), on November 18, 2001 signed an agreement to invest US$4 million in Adritec Group International (AGI). AGI intends to use the proceeds primarily to finance the construction and expansion of plants in Jordan and other parts of the world as well as for working capital requirements. Moreover, this new financing will be used to institutionalize the Company's operations.
The agreement was signed by Dr. Ahmad Mohammad Ali, ICD's Chairman of the Board of Directors, and H.E. Mr. Hatem Zu'bi, Chairman of AGI. ICD was established to stimulate private sector-led development in Islamic countries by identifying and assessing opportunities in the private sector through investment activities, merchant banking, asset management and Islamic capital markets development. The Corporation has an authorized capital of US$ 1.0 billion and paid -up capital of US$ 500 million, with IDB subscribing to 50% of its capital. ICD provides financing on terms and conditions, which reflect the requirements of the enterprises to be financed, the risks of the environment, the risks assumed by the Corporation, and the terms and conditions normally obtained by private investors for similar Islamic financing.
AGI which is a holding company was established to consolidate under one umbrella the ownership of four subsidiaries in Jordan, Syria, Tunisia and Morocco. It is considered the largest producer of drip irrigation systems in the Arab Middle East and North Africa, with nearly two decades of experience in the development, production, and marketing of micro-irrigation products and systems.
The four regional subsidiaries operating under AGI are Adritec Jordan (ADJ), Adritec Maroc (ADM), Adritec Syria (ADS), and Adritec Tunisie (ADT). AGI functions as the group's core manager, strategic partner and technical development center, in addition to serving as the subsidiaries' center for export market development. Each subsidiary acts independently, yet they synchronise their operations in terms of products and markets in line with AGI's guidelines. The day -to-day management of each subsidiary is entrusted to its general manager.
Atlas Investment Group (Atlas) acted as the sole financial advisor and distribution agent to AGI. Atlas (www.atlasinvest.net) is a regional investment-banking firm, headquartered in Amman, Jordan. It is the first and the largest investment-banking firm in Jordan, offering integrated investment banking services in these markets, including corporate finance, asset management and brokerage services.