FLAMINGO EGYPT B.V.
Status: Approved investmentWhy disclosure?
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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
Eagle Chemicals Group Limited – Mauritius (“Eagle”) – with operations based in Egypt – is North Africa’s largest solvent and water-based resin manufacturer with a 60% domestic market share. Eagle has highly diversified sales destinations exporting to more than 80 countries in Africa, Asia, South America and Europe. In line with global trends towards more environmentally friendly water-based resins, Eagle successfully ramped up its production volumes, capacity and exports of water-based products. The proportion of water-based vs. solvent-based will grow further during FMO’s holding period.
What is our funding objective?
FMO will provide value added in the following areas: governance, commercial, ESG and sustainability, organization and management, finance and reporting.
Why do we fund this investment?
FMO considers this an attractive investment opportunity as it provides us with a possibility to (i) back a regional market leader (60% domestic market share) in an attractive sector with a demonstrated resilient business; (ii) further support Eagle in strengthening its competitive positioning by various value addition initiatives including E&S and sustainability (move towards greener products).
What is the Environmental and Social categorization rationale?
E&S Category is A due to the sector specific risks of the chemical industry. IFC Performance Standards 1-4 are triggered whilst no resettlement or material biodiversity impacts are foreseen as the facilities are located in existing industrial zones. The main risks are associated with technical safety, occupational health and safety, resource efficiency and pollution prevention. This transaction would allow FMO to explore with the other shareholders further impact opportunities specifically in terms of sustainability and climate change (resilience and mitigation).
- Region
- Africa
- Country
- Egypt
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 11/10/2020
- Effective date
- 5/4/2021
- Total FMO financing
- USD 14.65 MLN
- Funding
- FMO NV
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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) - A