Project detail - Robust International Pte Ltd

Who is our prospective customer?

Robust International Pte. Ltd., founded in 2006 and headquartered in Singapore, is a prominent trader of agri commodities specialized in sesame and cashew nuts. Sourcing primarily from East and West Africa, Robust conducts early-stage processing operations to serve markets worldwide. The company is evolving from traditional trading and processing to becoming an end-to-end integrated supply chain company.

What is our funding objective?

The funding aims to support Robust International Pte. Ltd. in completing its strategic roadmap in Africa. Following investments in sesame and cashew processing plants, Robust requires working capital to enhance its sourcing capacity and fully utilize its CAPEX developments. The proposed financing is a USD 75 million long-term loan for working capital in Burkina Faso, Côte d’Ivoire, and Mozambique. FMO is the mandated lead arranger (on a best-efforts basis), providing USD 10 million (FMO-A), with an additional USD 20 million from FIM funds, and USD 45 million from other European DFIs. FIM funds are serviced by FMO Investment Management, focus on emerging markets, and aim for financial returns and development impact. Robust’s activities are expected to increase engagement with aggregators, cooperatives, and smallholder farmers in the countries of investment.

Why do we want to fund this investment?

The proposed transaction will increase Robust’s engagement with producers, smallholder farmers, and cooperatives, and support global food security. Additionally, it will contribute to the economic growth in the three countries’ scope of the investment, not only through investments in processing plants (first transaction) but also by adding value to the local supply chain and income generation. This facility offers a long-term tenor otherwise unavailable locally due to the greenfield nature of the project, demonstrating FMO’s additionality. Because of its impact on Mozambique and Burkina Faso, which are categorized as least developed countries (LDCs), the investment is eligible for a 67% Reducing Inequalities label.

What is the Environmental and Social categorization rationale?

This facility is a repeat deal for Robust International Pte Ltd, where the initial deal was signed in December 2023. The working capital facility does not change the E&S risk profile of Robust’s operations. This concerns an E&S B+ categorized investment. The sourcing and processing of cashew nuts in Côte d'Ivoire and sesame seeds in Mozambique and Burkina Faso have potential adverse E&S risks that extend beyond the site boundary but can be minimized through relevant mitigation measures. The main E&S risks of this investment include labor and working conditions, climate change risks, supply chain labor, and biodiversity risks, all exacerbated by the contextual risks of the countries in question. The Environmental & Social Action Plan (ESAP), which the client is already progressing on, is focused on mitigating these risks by improving policy and procedures, protecting casual labor, and working towards traceability and supplier management. Applicable IFC Performance Standards (PSs) are PS1 (Assessment and Management of Risks and Impacts), PS2 (Labor and Working Conditions), PS3 (Resource Efficiency and Pollution Prevention), PS4 (Community Health, Safety, and Security) for Robust’s operations, and PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) for the supply chains only. PS5 (Land Acquisition and Involuntary Resettlement) is not applicable as no relocation will take place, PS6 (Biodiversity) is not applicable for the company's facilities as they do not pose a risk to biodiversity, PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) are also not applicable as there are no indigenous peoples living in the countries or areas of the company's activities, and no cultural heritage elements in Robust' facilities' footprint. Note that all investments will be managed following the IFC PSs, and an ESAP will be part of the agreement.

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