DCP Direct Investments Fund I
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective customer?
FMO, in partnership with Diligent Capital Partners (DCP), a private equity fund manager focused on investments in agribusiness and food security in the Black Sea Region, will invest in Trans-Oil, a leading vertically integrated agribusiness group operating across Moldova, Ukraine, Romania, and Serbia. Trans-Oil provides grain handling, storage, trading services, and oilseed crushing. The company boasts a unique distribution and export network in Moldova, extending to the Black Sea region and upstream to the Danube basin. A substantial portion of Trans-Oil’s shipments are destined for Low-Income or Lower Middle-Income Countries.
What is our funding objective?
FMO and DCP will fund Trans-Oil’s CAPEX projects in Moldova to expand processing capacity and implement debottlenecking initiatives. The funding will enable increased grain sourcing from Ukrainian and Moldovan farmers.
Why do we want to fund this investment?
The investment will support the core strategy of FMO by deploying capital in the circle around Europe and into direct investments in agricultural companies where capital is scarce. By investing in Trans-Oil, FMO will aid Ukrainian farmers in monetizing their harvests despite war-related trade disruptions. This will ensure reliable procurement, providing farmers with the financial resources to repay debts and invest in future crops, sustaining their livelihoods and operations.
What is the Environmental and Social categorization rationale?
The E&S risk categorization of DCP Direct Investments Fund I is A, while most underlying investees are categorized as B+. Business activities include aggregation, distribution, processing, and trading agro-commodities. Environmental and Social (E&S) operational risks and impacts are mostly site-specific, except for supply chain risks. FMO’s E&S assessments via monitoring and due diligence activities indicate that the investment may have implications that must be managed consistently with the following IFC Performance Standards: 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 apply to this project. PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is triggered mainly due to the potential indirect impact of the primary supply chain. PS5 (Land Acquisition and Involuntary Resettlement), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) are considered not applicable to the company operations.
More investments
| Date | Total FMO financing |
|---|---|
| 5/20/2022 | EUR 0.05 MLN |
| 12/15/2020 | USD 20.00 MLN |
| 8/30/2018 | USD 16.20 MLN |
- Website customer/investment
- https://transoilcorp.com/en/page-home/
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Water
- Publication date
- 12/20/2024
- Deadline for feedback
- 2/18/2025
- Total FMO financing
- USD 25.00 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) - A
- Translation
- https://www.fmo.nl/dcp-direct-investments-fund-i