Mediterraneo Industries Company SAE
Status: Investment in contracting phaseWhy 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 prospective customer?
Mediterraneo is one of the major trading and processing companies in Egypt that import, process, and distribute essential food products in the local market such as pulses, beans and lentils. The company’s product portfolio has been expanding to include agri-commodities like grains, animal feed, coffee, spices, and others. Operating a vertically integrated value chain, Mediterraneo employs more than 800 people across its trading desks, three manufacturing facilities, and distribution centers in Egypt.
What is our funding objective?
FMO intends to provide a USD 25mln loan to Mediterraneo which will support ongoing growth of the company. Proceeds will be used for financing working capital needs and capital expenditure required for the construction of their new processing facility and distribution center in Egypt, which will be focusing on staple commodities.
Why do we want to fund this investment?
As one of the largest agricultural commodity traders in Egypt, Mediterraneo has an active role in providing access to nutritious staple food products primarily for the domestic market in Egypt. This is important because Egypt is a country that is heavily dependent on imports for its food security. The company specializes in high priority food such as fava beans, lentils, and wheat with Egyptians being the largest consumers of fava beans for human consumption and among the largest wheat importers worldwide. The proposed FMO financing will support the continuation of flow of essential food products into the country. Also, the proposed loan will contribute to economic growth by adding value through increase in local Agri processing and storage capacity in Egypt.
What is the Environmental and Social categorization rationale?
The E&S Risk Category of this investment is B+. This is based on limited and site-specific environmental and social risks and impacts at the processing plants and supply chain. These risks and impacts can be easily avoided or mitigated by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the operated plants. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security, PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is only applicable for risks associated to the supply chains. FMO will periodically review the project’s ongoing compliance with the Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 8/20/2024 | USD 10.00 MLN |
- Website customer/investment
- https://mediterraneo-egypt.com/
- Region
- Africa
- Country
- Egypt
- Sector
- Agribusiness, Food & Water
- Publication date
- 6/21/2024
- Deadline for feedback
- 8/20/2024
- Total FMO financing
- USD 15.00 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+
- Translation
- https://www.fmo.nl/mediterraneo