Metito Utilities’ mezzanine capital raise, funded by NBK Capital and the IFC, is the first hybrid deal of its kind in the Middle East. But while mezzanine financing is expected to grow in the region, Metito’s structure might not be replicated for a while.
The $40 million deal for the privately owned water treatment company took the form of preferred stock. “It had to have equity characteristics for accounting purposes. But it also needed debt-like returns and other features,” said...