Equity and debt financing: IFC providing up to $35m to SAFCO Venture
Summary
ISLAMABAD: IFC is providing up to $35 million in equity and debt financing to SAFCO Venture Holdings Limited (SAFCO Ventures) to help establish Pakistans first greenfield sustainable aviation fuel (SAF) facility, which will convert thousands of tons of used cooking oil and other waste oils into aviation fuel, helping to reduce global emissions.IFCs investment, mostly in the form of long-term patient equity capital, has been instrumental in anchoring this project and financing a nascent sector, said a press release.The project is expected to help promote a circular economy in Pakistan, create jobs, and support export-led growth.SAF, a biofuel made from renewable biomass and waste resources, can reduce life cycle greenhouse gas (GHG) emissions by up to 94 percent compared to conventional jet fuel. Biotech Energy (BTE) another subsidiary of Safco Ventures, currently manages Pakistans first-large scale biodiesel refinery as well as one of its largest oil feedstock collection networks. "We are pleased to collaborate with IFC in setting up this important facility in Pakistan," said Ali Shaikh, Founder and CEO of SAFCO Ventures. As IFCs first investment in sustainable aviation fuel production, it also sets the tone for similar IFC investments in this space as well as for other financiers to follow suit, said Ashruf Megahed, Regional Industry Head for Manufacturing, Agribusiness and Services for the Middle East, Central Asia, T\xfcrkiye, Pakistan, and Afghanistan.Pakistan generates more than a million tons of collectable used oils per year, including cooking oils and other waste that can be used to produce biofuel. By leveraging Pakistans abundant supply of used oils and restoring otherwise hazardous waste products, the initiative will help promote the development of a circular economy.IFC has invested approximately $13 billion in Pakistan since 1956, supporting diverse sectors such as renewable energy, financial inclusion, infrastructure development, agribusiness, manufacturing, housing, healthcare, and trade, among others.
Funding
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