NBK Capital announced today that its NBK Capital – GSC Mezzanine Fund I has completed its fourth transaction by committing $20 million in mezzanine financing to Metito Utilities, a leading water and wastewater treatment solution provider.
The deal jointly structured by NBK Capital and IFC, a member of the World Bank Group marks a significant step in Metito Utilities expansion plans.
Metito Utilities is a wholly owned subsidiary of Metito Holdings Limited (“MHL”), an established regional player with over 50 years operating history in the water industry. Having more than doubled revenue and EBITDA during 2008-2009, the investment will support the company’s sustained expansion as a full service water and wastewater treatment concessionaire across the Middle East, North Africa and China.
Currently operating in over 22 countries, MHL is the largest privately owned water treatment company in the region and the company’s portfolio of wastewater treatment and desalination projects consists of nine concession-based projects and nine plants across the UAE, Bahrain, Egypt and China.
Amjad Ahmad, Senior Managing Director of Alternative Investments at NBK Capital, said, “This investment marks our continuing strategy to provide critical growth capital for leading companies in the region.” Walid Cherif, Senior Director, Alternative Investments - Mezzanine, also added, “the importance of the sector in our region, thelong term nature of Metito concession business, its proven track record and market presence create the ideal investment for our fund.”
“This investment confirms Metito’s competitive advantage and strength of its business model, particularly at a time when sourcing new capital is extremely scarce. We are very pleased to be partnering with a reputable institutional investor which has shown its confidence in our company” said Rami Ghandour, Executive Director, Metito.
NBK Capital-GSC Mezzanine Fund I was advised by Vinson & Elkins LLP and Gibson, Dunn & Crutcher LLP acted as a legal adviser for Metito Utilities. NBK Capital-GSC Mezzanine Fund I managed by NBK Capital as part of its Alternative Investments Group, is a fund providing mezzanine financing to companies in MENA (Middle East and North Africa) and Turkey. Mezzanine financing is relevant for a variety of transactions including leveraged buyouts, refinancing, recapitalizations and growth financing. The Fund provides mezzanine financing for private equity-backed transactions as well as to mid-market companies.