EUR 3 million participating loan for family firm Nouvelle Conserverie Algérienne Rouiba
FEMIP, the Facility for Euro-Mediterranean Investment and Partnership, the European Investment Bank’s instrument for the Euro-Mediterranean region, has today given a practical demonstration of its support for Algeria’s private sector and sent out a message of confidence in this partner country’s economy by providing finance in local currency of nearly DZD 300 million (EUR 3 million) to the family firm Nouvelle Conserverie Algérienne Rouiba. This firm, which is one of the leading fruit juice producers on the Algerian market, has embarked upon a major growth and modernisation programme that this operation will make it possible to finance. The participating loan is an innovative financial instrument that falls between capital finance and loan finance. This long-term (8-year) funding instrument – which will be remunerated partly on the basis of the company’s performance – is particularly suited to the requirements of SMEs.
The signing ceremony took place this morning in Algiers, in the presence of Mr Philippe de Fontaine Vive, EIB Vice-President with responsibility for FEMIP, and Mr Slim Othmani, Managing Director of Nouvelle Conserverie Algérienne Rouiba.
FEMIP’s long-term vision in Algeria: to support the private sector, in particular the growth of SMEs, by promoting innovative financial products.
This investment comes under FEMIP’s strategy of stimulating the private sector in the Mediterranean partner countries. Priority is given to supporting local small and medium-sized enterprises, in particular by using financial products geared to market requirements, such as private equity (or quasi-equity) products, which are one of the strategic components of SME development.
The finance provided to Nouvelle Conserverie Algérienne Rouiba is intended to demonstrate, to foreign investors in particular, the viability and potential of the private equity sector in Algeria, both via direct operations with Algerian SMEs that are keen to expand their businesses and open up their capital, and via private equity funds.