A two-tranche local currency senior loan (the "Loan") of EGP 180m/EUR 9.1m to Hassan Allam Holding ("the Borrower").
The first tranche of EGP 55m/EUR 2.8m will finance the Borrower's capital participation in a growing FMCG e-commerce and distribution platform, whereas the second tranche of EGP 125m/EUR 6.3m will finance the Borrower's operating budget needs.
ETI score: 74
Primary Quality: Well Governed:
The project will support the client to implement improvements in Corporate Climate Governance (CCG) practices, including capacity building, identification of climate-action priorities and introduction of climate-related disclosures.
Secondary Quality: Inclusive: The Project will design and deliver new training programmes and opportunities to bridge skills mismatch within the Client's operations.
HASSAN ALLAM HOLDING SAE
Hassan Allam Holding (HAH) is a leading Egypt-based engineering and construction group whose primary operations include infrastructure, industrial, and commercial projects in Egypt and the MENA region. Origins since 1936, makes HAH the oldest construction franchise in the MENA region, and boasts a solid reputation, superior technical capabilities, and a diversified portfolio. HAH delivered, as a contractor, more than 70 projects over the past five years and currently has a backlog exceeding USD 7 billion. HAH stands out with an integrated business model offering world class engineering solutions, besides general and specialized construction, along with a range of complementary business lines, subsidiaries and affiliates that include steel fabrication, a wood workshop, aggregate quarries, ready mix concrete, concrete products, building technologies & office solutions, a concrete pipes factory and construction chemicals. HAH also invests as a developer, an owner, and an operator in infrastructure and logistics in partnership with global sector leaders. Hassan Allam Holding principally operates in Egypt with more than 30 subsidiaries and associates stretching corporate and commercial activity to Germany, the Netherlands, Saudi Arabia, Oman, Jordan, Congo-Kinshasa and Algeria. The Company is one of the largest employers in Egypt with upwards of 40,000 between full time employees and daily workers.
EBRD Finance Summary
Total Project Cost
Financial Additionality - Financing Structure: The Bank is offering funding that is not widely available in the local market.
Non-Financial Additionality - Standard-setting: helping projects and clients achieve higher standards: The Borrower will partner with the Bank to develop their sustainability management practices, through the development of a Corporate Climate Governance Action Plan, enhancing their climate governance and accountability as well as develop their climate reporting. Furthermore, the Bank will also support in standard setting in relation to gender and youth inclusion through delivering technical support to support the Borrower in meeting its human capital needs.
Environmental and Social Summary
Categorised B (2019 ESP). The Environmental and Social Due Diligence ("ESDD") for the Project was carried out using internal resources and included a review of previous environmental and social ("E&S") reporting from the client, Hassam Allam Holdings ("HAH"), two site visits to HAH projects under the control of their construction division and a review of publically available information related to the investment Target (the "Target"). ESDD confirmed HAH performance to date has been satisfactory and the implementation of the existing Environmental and Social Action Plan ("ESAP") from the previous project has largely been completed. Recent site visits also confirmed high standards related to E&S management especially related to occupational health and safety on construction projects under the control of the HAH Construction Division. The Bank will monitor activities of HAH through the Annual Environmental and Social monitoring reports submitted by HAH including E&S information made available to HAH.
Technical Cooperation and Grant Financing
Gender and Inclusion TC Programme of up to EUR 150,000 funded by SSF SEMED under TCRS 12804: TC will support a new training program, through the development of training materials and delivery of training of trainers, for the Client's new subsidiary, Legacy Development & Management SAE. The program will address current skill gaps in the Egyptian labor market and will enhance employability of young women and men.
Corporate Climate Governance TC programme of up to EUR 75,000 funded by (CCG) Client Support Facility under TCRS 15409: The TC will support improvements in the Group's climate corporate governance through enhancing governance and accountability; the development of a green strategy; and preparation of climate reporting.
Company Contact Information
+ 202 22659000
Yehia Zakaria St., Industrial Zone - lot 5, Sheraton Heliopolis Housing, Cairo, Egypt
PSD last updated
29 Jun 2022
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