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| Education Capital Holding |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27932 |
| Company name | First Education Holding B.S.C. (c) |
| Country | MENA Region |
| Sector | Education Services |
| Environmental category | B |
| Department | Health and Education |
| Status | Pending Disbursement |
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| Date SPI disclosed | May 4, 2009 |
| Projected board date | June 17, 2009 |
| Previous Events | Signed: June 25, 2009
Approved: June 23, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
First Education Holding (“FEH” or “the Company”) is an education holding company established in Bahrain in 2006. Currently, it owns and manages private schools and a chain of nurseries in Dubai and Sharjah and Cairo respectively.
Its mission is to grow primarily by acquisition, targeting acquisition of K-12 private schools and education related businesses across the Middle East and North Africa (“MENA”) region. Its value proposition is to provide strategic management support to the schools and thus optimize growth and quality of these education businesses.
FEH is embarking on an expansion plan to increase access to quality private education in MENA. Estimated at a total project cost of US$40 million (the “Project”), includes:
- Acquisition of an education company in Amman, Jordan;
- Expansion of its existing chain of nurseries in Cairo, Egypt (Baby Academy) ;
- Expansion of its existing schools in Dubai and Sharjah (Al Zuhour and Al Maaref); and
- Other MENA region education business acquisition – non-GCC country. |
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| Project sponsor and major shareholders of project company |
The company, FEH is owned by regional shareholders who are focused and committed to increasing access to and the growth of quality private education in the MENA region. The key shareholders of FEH include: Jordan Investment Trust - 40%, Addax Bank BSC – 37.5% and Tatweer Infrastructure Company - 20%. The remaining 2.5% is owned by high networth individual shareholders.
FEH is managed by a management company, Education Capital Holding. The management team comprises experienced education and finance professionals who have expertise in this sector and include Mr. Louay Khatib (Managing Director), Mr. Hugh MacPherson (Chief Executive Officer) and Mr. Sameer Merchant (Vice President Investments and Finance). |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $40 million. IFC’s proposed investment of up to $20 million will comprise a combination of equity and quasi equity investments for IFC’s own account. |
| Location of project and description of site |
| The schools in Jordan are located in two different sites in Amman, Jordan. The chain of nurseries will be located in leased facilities in different established or growing districts across Cairo. |
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| Anticipated development impact of the project |
- Increase access to quality education services in the MENA region
- Provide growth capital to schools in developing markets
- Improve operational performance at portfolio schools
- Introduce and demonstrate best management and educational practices
- Provide training to management and faculty |
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| IFC's expected development contribution |
- Long-term financing not otherwise available to education sector investments in the region
- Positive signal to investors regarding education sector in MENA
- Share IFC’s global education industry knowledge and experience in expansion of education facilities
- Catalytic role to attract new investors
- Share knowledge of management best standards and practices e.g. in corporate governance, financial management, environment and social issues and insurance |
| Environmental and social issues - Category B |
IFC's early review of this project, Education Capital Holding, has identified the following potential environmental, social, health and safety issues, which were analyzed in detail during appraisal:
- development and implementation of a corporate environmental, health and safety management system and management of environmental risk with regard to operation of the facilities;
- labor practices, terms of employment and occupational health & safety issues during operations, including Life and Fire Safety and emergency preparedness and response;
- management of wastewater and solid wastes and optimisation opportunities of water and energy use; and - engagement with local communities regarding environmental, health and safety performance, as well as any corporate social responsibility efforts.
Upon completion of the review, IFC will determine any gaps which will require inclusion in the Action Plan along with performance reporting requirements. Based on the appraisal, this investment has been categorized as B and will require at least 30 days disclosure by IFC prior to Board. |
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| For inquiries about the project, contact: |
Mr. Louay Khatib, Managing Director
Knowledge Village
Block 19, Office #314
Dubai, U.A.E
Tel: 971 4 364 4820
Fax: 971 4 367 8495
P.O. Box 502930
Dubai, U.A.E |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Knowledge Village
Block 19, Office #314
Dubai, U.A.E |
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