Louis Dreyfus Company Trade Finance Expansion

Location:

Regional

Project number:

51258

Business sector:

Agribusiness

Notice type:

Private

Target board date:

27 Nov 2019

Status:

Passed Final Review, Pending Board Approval

PSD disclosed:

20 Jun 2019

Translated versions of this PSD: Arabic | BulgarianKazakhPolishRomanianRussian | TajikTurkish | Ukrainian

Project Description

A USD 100 million revolving facility to finance part of the working capital needs of Louis Dreyfus Company's subsidiaries active in Ukraine, Turkey,  Egypt,  Kazakhstan, Tajikistan, Bulgaria, Romania, and Poland. The project will finance the working capital needs of the subsidiaries of Louis Dreyfus Company ("LDC", "Company") for the merchandising activities of its agricultural commodities in these countries.

Project Objectives

Working capital needs are seasonal and cover the purchase of agricultural commodities at prices that fluctuate throughout the year. The project will provide stable working capital financing for merchandising activities in countries where liquidity can be a constraint.

Transition Impact

The transition impact of the investment stems from its contribution to the "competitive" quality targeting selected value chains in EBRD's COOs. Particular emphasis will be given to improvements in the quality of crops including grains and cotton; better linkages to suppliers; and improved environmental and social standards. Additionally, under "well governed" as a secondary transition impact quality, LDC and EBRD will engage in a high-level dialogue for enhanced corporate governance for climate action. EBRD and LDC's joint efforts will focus on adoption of enhanced climate-related assessments and disclosures options, possibly leading to LDC'sparticipation in global platforms such as the Task Force on Climate-Related Financial Disclosures ("TCFD"), with significant demonstration effect in the industry.

Client Information

LOUIS DREYFUS COMPANY SUISSE SA

Founded in 1851 and active in more than 100 countries, Louis Dreyfus Company is a leading international merchant and processor of agricultural goods, originating, processing, merchandising and transporting approximately 80 million tons of products annually.

EBRD Finance Summary

USD 100,000,000

Up to USD 100 million 3-5 year revolving loan to partially finance the working capital needs of Louis Dreyfus Company's subsidiaries in Ukraine, Turkey, Egypt, Kazakhstan, Tajikistan, Bulgaria, Romania, and Poland.

Total Project Cost

USD 300,000,000.00

Note: Actual financing needs will fluctuate based on commodity prices and volumes, but are estimated at ca. USD 300 million.

Environmental and Social Summary

Categorized B. The provision of working capital for the purchase of agricultural commodities is not associated with significant environmental or social impacts.  Louis Dreyfus Company is well known to the Bank through previous transactions and the Company's management of environmental and social issues has always proved satisfactory to the Bank. Louis Dreyfus Company has put in place a comprehensive world-wide Safety, Health and Environment ("SHE") Management System with core elements on Leadership, Plant Inspections, Accident Investigations, Emergency Planning, Rules and Regulations, Training, Use of Personal Protective Equipment ("PPE"), Industrial Hygiene and Occupational Health, and Engineering Controls. EBRD has discussed the application of this system with the Company and is monitoring the Company's progress on its commitments. Full application of the system will ensure that the activities of the Company meet the Bank's Performance Requirements. The Company will continue to provide the Bank with annual reporting on environmental and social issues associated with its operations.

Technical Cooperation

Potential support could be provided on value chain development for specific crops and backward linkages to suppliers.

Company Contact Information

Hervé Sahores
herve.sahores@ldcom.com
+41-58 688 26 66
https://www.ldc.com/global/en/
29, route de l#Aéroport, PO Box 236, CH-1215 Geneva 15
 

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