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).
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.
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.
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
The Bank's new financing in the amount of EUR 6m complements the first EUR 7.7m loan extended in 2019.
Total Project Cost
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.
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
PSD last updated
25 Jan 2021
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