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The board of directors of Orascom Investment Holding, a leading investment firm led by Egyptian billionaire Naguib Sawiris, has approved a non-interest-bearing loan of €81.7 million ($79.84 million) secured by its North Korean subsidiary CHEO Technology.
According to a bourse filing published during trading hours on Tues., Oct. 19, the loan will be transferred to and held at the investment firm’s bank account in North Korea in accordance with applicable laws and regulations.
The non-interest-bearing loan will be used for working capital and general corporate purposes as Orascom’s North Korean subsidiary prepares to free up cash from core operations in order to expand further.
The announcement follows Orascom Investment Holding’s announcement of plans to invest in new and renewable energy as the continent offers some of the most appealing countries for energy investment due to high prices and rising demand for electricity and energy.
In addition, the Sawiris-led investment firm announced plans to build four new hotels in Egypt with investments ranging from $200 to $300 million as part of its move to increase its investment in the hospitality industry through its joint stock company, Ora Development.
Orascom Investment Holding, which traces its roots back to Orascom Telecom, has operated as a holding company with investments primarily in the telecom, media, and technology fields across core strategic markets in Europe, the Middle East, and North Africa since its inception in 2011.
The investment firm reported a consolidated profit of EGP95 million ($4.83 million) in the first half of 2022, compared to a consolidated loss of EGP93 million ($4.74 million) in the first half of 2021.
Under the leadership of Sawiris, an Egyptian billionaire who holds a strategic role in the group, Orascom Investment Holding maintains the legacy of the region’s most successful, entrepreneurial, and pioneering telecoms operator.
As of press time on Oct. 19, shares in the company were trading on the Egyptian Exchange for EGP0.21 ($0.0106) per share, giving it a market capitalization of EGP1.1 billion ($56 million).
