📋 Tender Overview
Website customer/investment
https://mediterraneo-egypt.com/
Region
Africa
Country
Egypt
Sector
Agribusiness, Food & Water
Publication date
6/21/2024
Effective date
11/26/2024
Total FMO financing
USD 10.00 MLN
Funding
FMO NV
Environmental & Social Category
(A, B+, B or C)
B+
Translation
https://www.fmo.nl/mediterra
Who is our customer
Mediterraneo is one of the major trading and processing companies in Egypt that import, process, and distribute essential food products in the local market such as pulses, beans and lentils. The company’s product portfolio has been expanding to include agri-commodities like grains, animal feed, coffee, spices, and others. Operating a vertically integrated value chain, Mediterraneo employs more than 800 people across its trading desks, three manufacturing facilities, and distribution centers in Egypt.
What is our funding objective
FMO intends to provide a USD 25mln loan to Mediterraneo which will support ongoing growth of the company. Proceeds will be used for financing working capital needs and capital expenditure required for the construction of their new processing facility and distribution center in Egypt, which will be focusing on staple commodities.
Why do we fund this investment
As one of the largest agricultural commodity traders in Egypt, Mediterraneo has an active role in providing access to nutritious staple food products primarily for the domestic market in Egypt. This is important because Egypt is a country that is heavily dependent on imports for its food security. The company specializes in high priority food such as fava beans, lentils, and wheat with Egyptians being the largest consumers of fava beans for human consumption and among the largest wheat importers worldwide. The proposed FMO financing will support the continuation of flow of essential food products into the country. Also, the proposed loan will contribute to economic growth by adding value through increase in local Agri processing and storage capacity in Egypt.
What is the Environmental and Social categorization rationale
The E&S Risk Category of this investment is B+. This is based on limited and site-specific environmental and social risks and impacts at the processing plants and supply chain. These risks and impacts can be easily avoided or mitigated by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the operated plants. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security, PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is only applicable for risks associated to the supply chains. FMO will periodically review the project’s ongo
