Project detail - SAMA AL-MANAR FOR GENERAL TRADING, ANIMAL AND AGRICULTURAL PRODUCTION, INDUSTRIAL PRODUCTION, OILS AND FEED INDUSTRY LLC

Who is our customer

Sama Al Manar is an Iraqi registered subsidiary of Tiryaki Group. Sama Al Manar imports soybean meal (“SBM”) and corn and distributes them in Iraq.

What is our funding objective?

Sama Al Manar will build and subsequently operate a soybean-crushing and corn-storage facilities in Umm Qasr Port of Basra in southern Iraq, replacing imports of soybean-meal with soybean and continuing the business of selling corn and soybean meal from its own production. FMO will participate for USD 31.5mln in a USD 112.5mln syndicate arranged by IFC. The funds will be used by the Borrower to finance the capex required for the new processing plant. It will also be used for working capital requirements, mainly the purchase of raw materials (soybean and corn).

Why do we fund this investment?

By investing in countries that are listed as fragile and conflict-affected situations by the World Bank, such as Iraq, FMO supports the revitalization of the private sector. The dominance of the public sector and the oil sector in the Iraqi economy has prevented the emergence of a viable diversified private sector and the associated job creation necessary for enhancing the welfare of all Iraqi people. With this proposed investment, FMO will support replacing imports of the final product by investing in a processing plant in Iraq thus increasing value-add within the country and creation of jobs.

What is the Environmental and Social categorization rationale?

Under the A/B syndicated loan structure, the Arranger (IFC) acts as the lender of record vis-à-vis the customer and is responsible for leading the ESG approach and for conducting E&S due diligence. FMO accepts the transaction based on our assessment of the Arranger’s due diligence and ability to meet their processes and requirements. Per FMO’s Sustainability Policy, the E&S category for this project is classified as B+. Please consult IFC’s disclosure page for additional investment and E&S information (https://disclosures.ifc.org/project-detail/SII/46252/sama-al-manar-tiryaki-iraq); please consult their disclosure page for additional investment and E&S information. The proposed project will have limited adverse E&S risks and/or impacts that are site-specific, reversible, and addressed through existing mitigation measures and good international industry practices (GIIPs). Key E&S risks and issues are (i) corporate and company-level ESMS to manage risks and impacts during construction and operations of the soybean crushing plant and warehouses, including contractor E&S management and safe working conditions; (ii) assurance of fair and safe labor and working conditions aligned with PS2 objectives; (iii) process/equipment safety plans, including assessment of explosion risks, HAZOP / Quantitative Risk Assessment (QRA); (iv) resource efficiency; (v) effluent treatment, solid and hazardous waste, noise and air emissions; (vi) emergency preparedness and response plan, including life and fire safety; (vii) stakeholder engagement and community grievance mechanism; (viii) security issues; and (ix) traceability and risk screening of soybean/corn sourcing, including due diligence of third-party suppliers.

More investments

Date	Total FMO financing
12/13/2023	USD 17.50 MLN