A EUR 75 million subscription in a Schuldschein issuance by Peugeot S.A. ("PSA"), for use by PSA's subsidiary in Morocco.
The project supports increasing the production capacity of PSA Morocco's vehicle assembly plant in Kenitra from 100,000 to 200,000 vehicles per year and supports the company's investments in R&D.
Transition impact will stem from the following qualities:
- Inclusion: The project will promote women's access to economic opportunities by increasing female participation in a male-dominated sector.
- Competitiveness: The project will support innovation through an investment in R&D.
Peugeot SA is a leading automotive manufacturer and the parent company of the global automotive group Groupe PSA. It owns 95% of PSA Morocco.
EBRD Finance Summary
The proceeds will finance capital expenditure and R&D expenses at PSA Morocco.
Total Project Cost
Total Schuldschein issuance is EUR 525 million.
Environmental and Social Summary
Category B (2014 ESP). This Project takes the form of a Capital Markets Transaction and as such, access to information was limited to publicly available documentation and responses by the client to requests and questions from the Bank. In addition to the document review, ESD visited the constructed and operational facility in Morocco and was able to question key management team members on EHSS issues related to the current and planned operations at the site. Review of the client's corporate EHSS standards has found these to be in line with the Bank's Performance Requirements (PRs). The Bank has experience of working with PSA at their Russian manufacturing plant, where the firm's corporate standards have been applied, and there is a documented history of the subsidiary operating in compliance with the Bank's Performance Requirements. The current and planned operations at the Morocco facility were observed to be in compliance with the PRs and the management team demonstrated capability and capacity to implement the proposed Project in line with these requirements also. No issues were identified as requiring mitigation or remedial actions in the form of an Environmental and Social Action Plan (ESAP).
The facility in Morocco is located in the Atlantic Free Trade Zone (AFTZ) and all utilities are in place and capable of supporting the operations and planned expansions. The plant has been subject to Environmental Impact Assessment prior to construction and all operational permits have been issued. The plant also has an approved environmental monitoring plan to address air, water, noise and waste issues. The current and planned operations will be within the permitted limits.
All employment at the facility is carried out in compliance with Moroccan employment legislation and PSA corporate standards which have been shown by previous Projects to be in line with the PRs.
PSA has a sophisticated OHS management system and review of data and observations made during the site visit indicated that performance is excellent in this regard.
The ATFZ is located on cleared forest land and there is no evidence of any resettlement being related to the set up of the zone.
Company Contact Information
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (firstname.lastname@example.org) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.