Gulf Capital, one of the largest and most active alternative investment firms in the Middle East, has signed a debt financing agreement to support Egypt's largest petrochemicals holding company Carbon Holdings.

Karim El Solh, CEO of Gulf Capital, said: "We are excited about the growth prospects in Egypt and are keen to increase our investments there. We are particularly thrilled to be working with Carbon Holdings which is a key force in the modern industrial development of Egypt and whose projects are expected to increase the country's overall exports significantly, create approximately 70,000 direct and indirect jobs and boost industrial growth and trade flows."

"Carbon Holdings is set to transform the Egyptian petrochemical industry and we are pleased to be working with its visionary management team to realise this ambitious goal. Egypt today represents one of the most attractive investment destinations in the Middle East and Gulf Capital is eager to increase its direct investments in the country," he added.

Gulf Capital will provide an AED92m ($25m) convertible, five-year loan facility to finance the development and expansion of three of Carbon Holdings’ petrochemical projects: Egypt Hydrocarbon Corporation, a $550m mining grade ammonium nitrate plant, Oriental Petrochemicals Corporation, a polypropylene production plant, and Tahrir Petrochemicals Corporation, a $7.4bn greenfield naphtha cracker, olefins production complex with associated derivative units.

The transaction will be structured through Gulf Capital’s credit fund, GC Credit Opportunities Fund I.

Launched in June 2011, the Fund specifically addresses the substantial gap in regional financing markets by providing timely acquisition finance and growth capital to medium-sized business unable to access bank lending.

The $221m fund aims to generate income and capital appreciation by investing in a diversified debt portfolio including mezzanine instruments, preferred equity securities and high yield debt securities from mainly regional issuers.

Basil El-Baz, Chairman and CEO of Carbon Holdings, said: "We are fortunate to be partnering with Gulf Capital which shares our views and vision for Egypt's future and which is prepared to back its commitment with significant local investments. It is heavy industry that underpins any economy and our government understands that and supports the industrialization of Egypt in an unparalleled way. Our financial partners have realized this and have become even more confident in the future of the Egyptian economy."

"We believe that the industrial sector in Egypt presents tremendous growth opportunities. We may even be witnessing the beginning of a proper industrial revolution, driven by major investments in basic product manufacturing that will cascade into locally produced finished goods which will be sold locally to a massive domestic consumer market or exported internationally. We look forward to embarking with Gulf Capital on this exciting growth journey together," he said.