IFC is investing in Al-Douh Iraqi Company for Cement Industries (part of Al-Riyadh Investment Companies Group) to help boost economic diversification and improve sustainable growth in Iraq.
IFC is providing a financing package of up to US$130m in long-term debt to Al-Douh. The financing will enable Al-Douh to expand its cement production capacity by 1.9Mta to reach overall production of approximately 3Mt of cement by the end of 2025. Of the total financing provided, up to US$25m will be mobilised from the Managed Co-lending Portfolio Program (MCPP), IFC’s syndications platform for institutional investors. The company’s expansion is expected to create more than 2700 direct and indirect jobs, including along the cement value chain, IFC said in a press release.
Al-Douh plans to install a new high thermal efficiency kiln, a new captive power plant using natural gas as a primary fuel rather than heavy fuel oil (HFO), and a new waste heat recovery for power generation system that will replace up to 30 per cent of electricity generated by fossil fuel-based captive power plants. These will enable the project to meet the criteria outlined in the European Union taxonomy for sustainable cement clinker production.
"We are very grateful for this partnership with the International Finance Corporation, and we thank them for their great efforts in completing this major and vital agreement. We look forward to building a long-term joint relationship in this project and subsequent projects,” said Sheikh Hatam Al-Khawam, chairman of the Board of Al-Douh Iraqi Company for Cement Industries.
