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Citadel Capital raises debt

The Egyptian-based private equity firm is in the final stages of a $150m long-term debt financing. While exits from larger portfolio holdings have been delayed for at least one year, smaller liquidations should net the firm another $50m.

Citadel Capital expects to complete a $200 million capital-raising effort in the coming days, confirmed a spokesperson with the Egyptian-based private equity shop.

“The firm is now finalising a $150 million long-term financing facility, giving it a total of $325 million of long-term capital  – including a recent $175.6 million rights issue,” according to the spokesperson.  

Another $50 million should be generated as a result of “small divestitures”, the spokesperson said. Citadel, while based in the Middle East, has a mission that includes the transformation of railroad and waterway transportation in African countries.

The latest capital-raise in the debt markets is one in a series of capital-raising efforts that have unfolded at Citadel since the political uprising began in Egypt, activity that has culminated in hundreds of millions of dollars raised in the equity and debt markets.

The firm is also positioning its portfolio defensively in a country where the political rebirth is sluggishly unfolding and the fate of economic prosperity hangs in the balance. As a consequence of its caution, Citadel will avoid directing capital into any greenfield projects for the remainder of this year and is scrutinising costs more closely.

Also, the firm is postponing the largest of portfolio exits while planning for the possibility of a trio of minor divestments in the first quarter of 2012.