Provision of a EUR 10 million senior secured loan with a maturity of 7 years (including 2 years of grace period). The proceeds will be used to finance a new green capex plan to improve vertical integration.
The Project will enable the client to lower the cost of raw materials thanks to higher vertical integration through the in-house production of inputs. In addition, the Project will generate additional external annual revenues from sales of regenerated mattress and pillows fillers to other industrial producers with an attractive profitability.
ETI score: 65
Green: the Project is 100% GET. It is a new technology implemented in the country, where a home furniture manufacturer adopts a circular sourcing strategy for its raw materials supply.
Competitive: the Project will improve the client's cost-competitiveness thanks to higher vertical integration, whereby inputs are produced in-house. External sales of regenerated mattress and pillows fillers will generate additional revenue streams.
UNI CONFORT MAROC - DOLIDOL SA
Uni Confort Maroc Dolidol ("Dolidol" or the Borrower), a company incorporated in Morocco, and a leading producer of foam and mattresses for home furnishings. The Borrower is 77% owned by Palmeraie Holding, a Moroccan conglomerate; and 23% owned by DPI, a large pan-African private equity fund. Palmeraie Holding is fully owned by the Berrada Sounni family.
EBRD Finance Summary
The proceeds of the Bank will finance a green capex in Morocco for the production of mattress and pillows fillers to be used as an input in mattresses and other bedding products
Total Project Cost
The EBRD provides all the financing for the Project.
The Bank is additional through a financing structure which is not easily available in the market and which is required to structure the project; the long-term relationship with the client allowing to take on more risks; and EBRD's expertise in energy and resource efficiency and climate resilience.
Environmental and Social Summary
Categorised B (2019 ESP). The Environmental and Social (E&S) risks and impacts associated with construction and operation of a recycling plant to transform used PET plastic bottles into polyester fibres have been readily identified. In-house due diligence was carried out by means of review of a questionnaire and information package supplied by the Client, review of annual reports from the previous transaction, and follow-up Q&A with management interviews. The results of the ESDD indicated that the Company is well managed and has the internal capacity to operate in line with the Performance Requirements. An additional ESAP, specific to the recycling plant has been prepared and will be agreed with the Client before signing.
The Client has in place an integrated management system for the existing plant (ISO 45001 certification obtained in April 2021 and ISO14001 certification ongoing targeted by December 2021) that will be extended to cover the new activities. An Environmental Impact Assessment was prepared according to national requirements and the environmental permit for was received in 2021.
The existing HR Policy, in line with the Moroccan Labour Code, will apply to the new hired staff. The ESAP requires the addition of a GBVH component to this Policy. The PET bottles will be sourced from aggregators on the local market. Considering that these supply chains (collection of used plastic bottles) can have potential child labour involvement, the Company will, as required in the ESAP, conduct a screening before initiating local sourcing to identify such risk, include specific requirements in the contracts signed with the supply chain partners, conduct regular monitoring, and develop a remedial action plan if relevant. The existing environmental monitoring system will be extended to cover the Company's emissions (gas boiler, wastewaters, noise). The ESAP requires installation of oil separators for rainwaters, as well as the revision of the Emergency Response Plan.
Regular safety tours are conducted for the Morocco operations by the HSE supervisors; they include the ongoing construction activities.
The new plant is being built within the land already owned by Dolidol in the same industrial park as the existing plant; there is therefore no need for land acquisition and no additional footprint.
The Bank will monitor implementation of the additional ESAP through review of annual Environmental and Social Reports (AESR) and communications with the Company as necessary.
Technical Cooperation and Grant Financing
The Project benefits from a first loss risk cover and TC for project preparation from the European Fund for Sustainable Development (EFSD).
The programme contributes to transitioning economies in the European Neighbourhood South and European Neighbourhood East by supporting sustainable investments in green city infrastructure, greening logistics chains, energy efficiency and green technology transfers in industrial processes, commercial operations and buildings.
Company Contact Information
PSD last updated
18 Aug 2021
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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