DFF - United Metals Company

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a USD 25 million two-year working capital loan (the "Loan") to United Metals Company (the "Borrower" or the "Company") to support the Company's working capital needs amidst the COVID-19 pandemic.

Project ID 52827

Status Complete

Location

Egypt

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Sami Nabil
Sami.Nabil@ElSewedy.com

Project ID 52827

Status Complete

Location

Egypt

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

29 Jun 2021

Disclosure date

18 Aug 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

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."

DFF - United Metals Company (Arabic) (PDF, 1.19MB)

Project description

Project objectives

Support the working capital requirements of the Borrower. Pandemic-related supply disruptions had contributed to soaring copper prices, including copper cathodes - the Borrower's key production input, during the second half of 2020 and continuing into 2021. The Loan will enhance the Company's financial resilience to withstand the potential negative implications of the COVID-19 pandemic through providing funding to source raw materials.

Transition impact

ETI Score:64

>Primary TI quality - Resilient: The project will improve the Borrower's financial resilience to withstand the potential negative implications of the COVID-19 pandemic.

Secondary TI quality - Inclusion: The project will improve engagement, recruitment and integration of disabled workers through an externally verified program.

Client information

UNITED METALS COMPANY

United Metals Company (the "Borrower"), is an Egyptian joint stock company specialized in the production of copper rods, the main raw material used in the production of copper cables. The Borrower is 99.8% owned by El Sewedy Electric (the "Sponsor" or the "Guarantor"), a fully integrated energy solutions provider and one of the largest manufacturers of wires and cables in the Middle East and Africa. El Sewedy Electric is publicly-listed on the Egyptian Stock Exchange with a market cap of around EGP 19.09bn/USD 1.22bn as of 11 August 2021. The Borrower is former client of the Bank through a loan provided in 2017.

EBRD Finance Summary

USD 25,000,000.00

Total project cost

USD 25,000,000.00

Additionality

Financial Additionality -Financing Structure: The EBRD facility will provide stable working capital funding compared to the current short-term working capital facilities available to the Borrower.
Non-Financial Additionality: The Sponsor together with its vocational training academy (El Sewedy Technical Academy") will partner with the EBRD to launch a first of its kind awareness campaign for promoting equal opportunities aimed at empowerment of women and people with disabilities in the manufacturing industries in Egypt. EBRD will provide technical support to enhance the Group's capacities in this area, hence, opening up new employment and skills-building opportunities for people with disabilities.

Environmental & Social Summary

Categorised B (2019 ESP). United Metals Company is an existing client of the Bank and has demonstrated a robust approach to Environmental and Social (E&S) matters. The Project does not involve any capital expenditure (CapEx) and the limited E&S risks and impacts are associated with routine operations. The current E&S Action Plan - ESAP (under EBRD's 2014 E&S Policy), which sought to reduce dust emissions from the furnace and improve occupational health and safety, has been fully implemented.

E&S due diligence for the United Metals Company Project was conducted by ESD and included a review of EBRD's previous appraisal, E&S reporting by the Company and follow up questions to consider EBRD's 2019 E&S Policy including on supply chain risk management and GBVH. United Metals Company maintains certified management systems to manage environmental and health and safety risks. This includes a supply chain management system, which sets out procedures for considering and avoiding E&S risks associated with its suppliers. Labor provisions are aligned with PR2 and covered within various HR policies, procedures and an employee handbook, including provisions on harassment in the work place, equal opportunities and non-discrimination, employee code of conduct, employee training and a grievance mechanism. No retrenchment of employees was required due to COVID-19. The Company operates a gas-fired furnace to melt copper cathodes for the production of copper rods. The emissions from this furnace are now in line with the EU standards. The Company has further implemented various energy efficiency investments to reduce energy demand. GHG emissions from the facility do not exceed 25,000 tons CO2/year. The Company's facility is located in an industrial area of Cairo. No land acquisition is required for the Project and the Company's operations are distant to any communities or sensitive receptors. Occupational health and safety provisions and performance are in line with EBRD's requirements. Such provisions extend to the transport of its products by road. United Metals Company has put in place appropriate controls to manage risks associated with COVID-19. The project is not associated with any impacts to biodiversity or cultural heritage. The Company has in place a stakeholder engagement plan and associated grievance mechanism.

A limited ESAP has been developed and agreed with the Company. Key actions include maintaining the supply chain management system in line with EBRD's requirements and ensuring that the external grievance mechanism is maintained. Reporting by the Company to EBRD on E&S matters will continue on an annual basis.

Technical Cooperation and Grant Financing

Associated Grants, TC and non-TC: Gender and Inclusion TC Framework (TCRS 12804)

TC will enhance the capacities of the Sponsor and El Sewedy Technical Academy (STA) in delivering disability-inclusive human resources policies and practices (affecting workers' recruitment, on boarding and integration) and training programs.

Company Contact Information

Sami Nabil
Sami.Nabil@ElSewedy.com

PSD last updated

18 Aug 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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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DFF - United Metals Company

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)