DCP DIRECT INVESTMENTS FUND I
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Allseeds, founded in 2010, is an export-oriented infrastructure operator in the agribusiness sector located in the Yuzhny port of the Odessa region in Ukraine. It focuses on vegetable oils, by-products of their extraction and their derivatives. The company’s current lines of business are sunflower oil extraction, the production of sunflower meal, and the storage and transshipment of these products to large vessels in the Yuzhny port. It operates both as a crusher and a toller, while also providing it transshipment services to third parties.
What is our funding objective?
Funding by FMO is used to increase Allseeds PPE capacity and its overall utilization rate of that PPE. The end objective is to realize the growth potential of the target due to its competitive advantages, from its logistics edge, management skills, and industry standing.
Why do we fund this investment?
The investment supports the core strategy of FMO, by deploying capital in the “Circle around Europe” and in direct investments in Agricultural enterprises where capital is scare. Additionally, the investment will catalyze possible other sources of capital as part of the company’s continued growth strategy. Additionally, FMO has identified this investment with a new partner in Ukraine, Diligent Capital Partners, (“DCP”). In executing this investment FMO is also supporting the development of DCP as a potential future fund manager in Ukraine, thus supporting the PE market in this country. DCP will be engaged to not only identify investments but also to manage the investment both in the value creation and exit portion of the investment cycle.
What is the Environmental and Social categorization rationale?
“E&S Category is B+. Allseeds is a brownfield project. IFC PS 1-4 are applicable. General IFC EHS Guidelines for A and B+ projects and the sector-specific EHS guideline: Vegetable Oil Production and Processing are applicable. IFC PS 5 -8 are not applicable. IFC PS 5 is not applicable, as no physical or economical resettlement occurred for the development of this project; IFC PS 6 is not applicable due to the project being located in an industrial area with no rich biodiversity or conservation areas nearby; IFC PS 7 is not applicable as there are no indigenous people affected; IFC PS 8 is not applicable as there is no cultural heritage at the location nor in the vicinity. FMO will have a leading role in steering the implementation of the ESAP and monitoring the E&S performance of the Company. The core E&S opportunities identified, are the upgrade of the current E&S performance to meet the IFC Performance Standards. FMO can also assist the company in their efforts to improve further resource efficiency (potentially through CD).”
More investments
| Date | Total FMO financing |
|---|---|
| 5/20/2022 | EUR 0.05 MLN |
| 12/15/2020 | USD 20.00 MLN |
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Water
- Effective date
- 8/30/2018
- Total FMO financing
- USD 16.20 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+