YEMEN COMPANY FOR SUGAR REFINING
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
HSA Foods consists of six companies (the “Co-Borrowers”), members of the HSA Group namely, (i) National Dairy and Food Company Taiz; (ii) National Dairy and Food Company Hodaida; (iii) Yemen Company for Sugar Refining; (iv) Yemen Company for Flour Mills and Silos Aden; (v) Yemen Company for Flour Mills and Silos Al Hodaida; and (vi) Al Hodaida Flour Mills Co. Limited.
What is our funding objective?
FMO participates for USD 20mln in a USD 75mln debt facility (the “Facility”) led by IFC. The funds will be used by the Co-Borrowers to prepay their raw materials, foodstuff commodities, predominantly wheat, raw sugar and powdered milk.
Why do we fund this investment?
According to the United Nations, the condition in Yemen is close to a famine and almost half of the population is experiencing high levels of food insecurity. The facility will help the Co-Borrowers increase the imports of raw materials for the production of the most basic foodstuffs, i.e., flour, sugar and dairy in volumes that will materially improve the nutrition of the population.
What is the Environmental and Social categorization rationale?
HSA Foods is a category B+ client. FMO’s preliminary environmental and social due diligence indicates that the investment may have impacts which must be managed in a manner consistent with the following Performance Standards: - PS 1: Assessment and Management of Environmental and Social Risks and Impacts; - PS 2: Labour and working conditions; - PS 3: Resource Efficiency and Pollution Prevention - PS 4: Community Health, Safety and Security; and - PS 6 Biodiversity Conservation. - PS 5 Land Acquisition and Involuntary Resettlement is not applicable since there is no land acquisition or economic displacement associated to the financed activities; - PS 7 Indigenous people is not applicable since no indigenous people are directly or indirectly affected by the financed activities and PS 8 Cultural Heritage is not applicable since the financed activities do not affect any tangible or intangible cultural heritage. FMO will periodically review the project’s compliance with the Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 2/9/2024 | USD 20.00 MLN |
- Region
- Asia
- Country
- Yemen
- Sector
- Agribusiness, Food & Water
- Publication date
- 12/14/2020
- Effective date
- 5/12/2021
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+