Provision of up to MAD 36.9m (EUR 3.5m equivalent) senior secured loan to Landor Maroc Industries (the "Borrower" or "LMI") to partially fund its capex program and working capital needs. LMI is the Moroccan subsidiary of Landor SA ("Landor" or the "Sponsor").
The Project aims to partially finance (i) new equipment related to cheese slices, triangle cheese, and sauces, (ii) building and storage capacity extension, and (iii) working capital needs related to LMI operations.
ETI score: 72
The ETI score is 60 (EBRD system indicates a different rating due to ongoing issues with the system).
The Project's transition impact is expected to derive from its competitive and integrated qualities, namely through: (i) new products, such as sliced cheese and further increase Landor penetration of the Moroccan market; and (ii) support the Sponsor's international investment and progressive transformation into a regional player.
LAND'OR MAROC INDUSTRIES
Sponsor: Landor SA ("Landor" or the "Sponsor") is a Tunisian joint-stock company, and one of the leading local processed cheese producers, with a wide range of products for mass consumption and Hotels-Restaurants-Catering segment. Landor was created in 1994 by Dr Hatem Denguezli and has been listed on the Tunis Stock Exchange since 2013. Landor and its subsidiaries have 456 employees in total.
Borrower: Landor Maroc Industries is the recently established subsidiary of Landor SA in Morocco that will own and operate a new cheese processing plant in Morocco.
EBRD Finance Summary
Total Project Cost
Financing Structure: The multi-currency loan structure offered to Landor SA and LMI is hardly available on both Tunisian and Moroccan markets.
Environmental and Social Summary
Categorised B (2019 ESP). In-house due diligence was carried out by means of review of the Questionnaire, the 2020 Annual Environmental and Social Report (AESR) and the information package supplied by the client. The environmental and social impacts associated with the extension of the cheese production plant under construction in Morocco have been identified and will be managed by the implementation of an Environmental and Social Action Plan (ESAP) agreed for the first transaction and updated for the new transaction. The results of the environmental and social due diligence (ESDD) indicated that Landor is well managed, has done some progress with the implementation of the initial ESAP, and has the internal capacity to operate in line with the Performance Requirements. Discussions with the client confirmed that the new facility in Morocco is expected to meet EU substantive environmental standards from the outset - and more specifically the Best Available Technique (BAT) for Food, Drink and Milk Industries (for the process), as well as the EU Medium Combustion Plant Directive (for the boilers). This will be confirmed through on-site monitoring during the first year of operation. The project is considered aligned with the objectives of the Paris Agreement.
The Environmental Impact Assessment required by the Moroccan legislation for the new plant has been completed in 2020 and the Environmental permit was received. Landor is planning to obtain ISO14001, ISO45001 and FSSC 22000 (food safety) certifications in 2023. The Code of Conduct for Suppliers already in place in Tunisia (covering human rights, integrity, child and forced labour, non-discrimination, working hours and wages, H&S and environment) will also be implemented in Morocco. Landor will follow the Moroccan Labour Code and the Human Resources policies already in place in Tunisia (that were found aligned with PR2 during the ESDD for the first transaction).
The land has been purchased in an industrial area from the State. According to Landor, there was no previous site user. The plant is currently under construction (almost completed). Landor included health and safety considerations in the contractual agreements with contractors in charge of the construction of the new plant in Morocco; client's staff conduct the supervision of works. The Emergency Response Plan is under development. Landor will own 60 trucks to distribute final products in Morocco; the ESAP requires developing and implementing a Road Traffic Safety Management System.
Waste management will include recycling of some non-hazardous waste (cardboard, aluminium, plastic), treatment by licensed contractors for oily waste and batteries, and destruction of microbiological waste and old cheese. Wastewaters will be pre-treated on site (to ensure DCOl300mg/L) and then treated at the industrial area waste water treatment plant, before discharge to natural environment. Two gas-fired boilers (2 MW each) will be installed. Water consumption ratio is predicted to 3m3 of water per ton of product, and wastewater discharge ratio is predicted to 2.3 m3 of wastewater per ton of product).
The ESAP agreed with Landor in January 2020 for the first transaction covers the risks of this new transaction; one action has been added to confirm alignment with the BAT after one year of operation.
The Bank will continue monitoring implementation of the ESAP through review of AESR and communications with the company as necessary.
Technical Cooperation and Grant Financing
The transaction's preparation will be supported with SBI TC funds, which will cover up to 50% of the legal due diligence costs. The remaining 50% will be covered by the Client. SBI TC funds are funded by EBRD SSF.
Company Contact Information
+216 71 366 666
PSD last updated
14 Dec 2021
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