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Monday, 21 March 2022

Intro Group to invest EGP 1 bn in waste management this year

Intro Group subsidiary Intro Sustainable Resources (IRS) is looking to invest some EGP 1 bn in waste recycling this year, Mostafa Khairat — the CEO of Intro’s waste management arm and BariQ, told Al Mal. IRS was established in 2020 to develop clean energy, waste management and recycling projects through its subsidiaries, Intro Power and Utilities and Intro Waste Management and Material Recovery. Intro Waste Management acquired recycling company BariQ from Raya for EGP 571 mn last year.

Last we heard, IRS was in line to receive USD 5.3 mn from the European Bank for Reconstruction and Development to finance projects including combined heat and power plants, renewable energy generation, electricity distribution, and waste management. The USD 5.3 mn funding will finance around a quarter of the total project cost — USD 18.7 mn — which will include two combined heat and power plants.

Cross-border acquisitions on the menu: IRS has set aside EGP 500 mn for acquisitions this year, including in Egypt, Africa, and the Gulf, Khairat said. He didn’t provide further details on the specific targets, but said they would all be in the recycling sector.

IPOs in the works: BariQ could also be looking at an EGX debut in 2023, Khairat is quoted as saying. The recycling company’s potential IPO would depend on it reaching a certain critical mass and meeting governance and structural requirements for offering shares, Khairat added. IRS is considering IPOing BariQ on its own or alongside other subsidiaries, or taking the parent company to market, according to the CEO.

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