DFF - Lamatem

Location:

Morocco

Project number:

50730

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

22 Dec 2020

Status:

Signed

PSD disclosed:

25 Jan 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of EUR 6 million senior secured loan (with 1.5-y grace) to Lamatem SARL, an existing client of the Bank, to support new capex programme in production of medical garments and single-use personal protective equipment (PPE).

Project Objectives

Lamatem's existing facility, supported by the first EBRD loan in 2019, started its operations in Q3 2019, mainly as a toll manufacturer for Molnlycke, a leading global supplier of medical solutions based in Sweden. In response to the changing market environment, the Borrower has now launched a new capex programme to meet increasing demand from Moroccan clinics and its new European clients. The programme also includes new product segments of which a sterilization process. 

Transition Impact

ETI score: 60

-        Competitive: support of the response to the crisis caused by COVID-19 pandemic, by increasing Lamatem's production capacities, improving its vertical integration and expanding its product range. 

-        Inclusive: introduction of new training and employment opportunities for young people. In-line with the Bank's Youth Employment Programme, the client is working with the EBRD to develop and established a work-based learning programme.

Client Information

LAMATEM SARL

Lamatem SARL ("Lamatem", the "Client" or the "Borrower"), an export-oriented company established in 2016 near Casablanca to produce high-end medical garments, fully owned by the Badaa family. 

EBRD Finance Summary

EUR 13,700,000.00

The Bank's new financing in the amount of EUR 6m complements the first EUR 7.7m loan extended in 2019.

Total Project Cost

EUR 20,780,128.00

The initial financial plan supported the set-up of the first plant in 2019 in the amount of EUR 12.8m. The new capex plan in the amount of EUR 8m includes expansion of the existing facility and the introduction of new activities of which a sterilization process. 

Additionality

The Bank's additionality stems from: 1) Financing structure on reasonable terms in Euro, including a longer grace period and ability to finance follow-up investments; 2) Risk mitigation: the expansion into new export markets possible due to the Bank's long-term support; 3) Standard-setting: EBRD's expertise in making use of circular economy and renewable energy solutions.

Technical Cooperation and Grant Financing

The preparation of the transaction will be supported with Small Business Initiative TC funds (funded by the EBRD Special Shareholders Fund), covering legal due diligence costs. In addition, a first loss guarantee of up to 30% will be provided through the EU-EBRD Municipal, Infrastructure and Industrial Resilience Guarantee Programme. The Guarantee Programme is funded by the European Union under its European Fund for Sustainable Development (EFSD). Through the EFSD, the EU supports investments in Africa and the EU's neighbouring countries to help achieve the sustainable development goals. In line with this objective, the EU-EBRD Programme supports 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

Lamatem
ali.badaa@lamatem.ma

PSD last updated

25 Jan 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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