Provision of a USD 40 million senior unsecured loan (the "Loan") to Angel Yeast Egypt (the "Company"), a fully-owned subsidiary of Angel Yeast Co. Ltd ("AY"). The loan will be used for the expansion of the Company's existing yeast production plant in the city of Beni Suef in Egypt, adding 20,000 tonnes of yeast production capacity.
The Loan will be used to partially finance the extension and expansion of Angel Yeast Egypt's existing yeast production plant in the city of Beni Suef in Egypt: adding 20,000 tonnes of yeast production capacity, including 15,000 tonnes of dry yeast production capacity and 5,000 tonnes of yeast extract production capacity.
ETI score: 62
The Project will contribute to the Integrated quality as it will support the expansion of storage infrastructure to increase the Company's export capacity.
Under the Competitive quality, the Project will support: (i) the diversification and enhancement of the Company's value chain by adding new private sector suppliers and improving their quality and operational standards, and (ii) strengthening the competitiveness of the Company through knowledge sharing and enhancement of the labour force's competencies, especially newly hired employees in the Beni Suef region.
ANGEL YEAST EGYPT COMPANY LIMITED
Angel Yeast Egypt is one of the leading yeast producers and exporters in Egypt. The parent Angel Yeast China Ltd. is the third largest producer and exporter of yeast in the world and the largest producer of yeast extract.
EBRD Finance Summary
Total Project Cost
The additionality of the Project is expected through the following:
(i) Financing Structure: the Bank will provide a sizeable long term USD financing that is not widely available on the local market.
(ii) Risk Mitigation: Given the volatile political and economic environment in the region, the Bank's involvement will provide additional comfort to Angel Yeast Co. Ltd as it continues to invest and grow its exposure to the Egyptian market.
(iii) Standard setting: The Bank will support Angel Yeast Egypt as part of the Environmental and Social Action Plan (ESAP) to improve corporate climate governance across its operations in Egypt in line with leading international standards. The Bank's engagement with the Company will also ensure that the new production lines financed by the Bank and the operations of the factory achieve higher levels of resource efficiency by adhering to the best practice international resource efficiency management standards (ISO50001, ISO46001).
Environmental and Social Summary
This Project was categorised B (2019 ESP). Through the existing exposure, Angel Yeast has demonstrated overall compliance with the Bank's E&S Policy and the previously agreed E&S Action Plan (ESAP), and has been satisfactorily reporting on its E&S performance. The monitoring carried out thus far indicates no red flags or substantial gaps with EBRD's Performance Requirements. The E&S risks associated with the current transaction are site specific and readily addressed through standard mitigation measures.
The Environmental & Social Due Diligence (ESDD) for this Project was carried out in-house and was based on the findings of the 2017 independent ESDD, documentation review regarding the new facility, a site visit and interviews with the client's representatives. The planned new yeast extraction plant was subject to an Environmental and Social Impact Assessment, and is located within the current Company premises in the Beni Suef industrial zone and will not require any additional land acquisition. The Company has HR policies and procedures that are in check with the national law and comply with EBRD's PR2.
The production lines are in line with EU BAT and meet EU emissions standards, and the factory features biogas recovery for steam generation as well as waste water recycling. The new production facility is expected to produce about 75k tonnes of CO2eq per year stemming from the natural yeast fermentation process. The Company has therefore been required to prepare and implement a formal climate action plan to include an assessment of GHG emissions; identification and assessment of potential measures to reduce energy and water consumption and GHG emissions, and mitigate climate change risks in the short, medium and long term. An updated ESAP has been prepared integrating the above items as well as the requirement to manage new facility's resources in line with ISO50001 for energy management and ISO460001 for water efficiency management.
Climate resilience measures have been integrated into the Project design and through further commitments in the ESAP. The updated ESAP has been agreed with the client, and ESD will continue to monitor the Company compliance through the review of annual reports and site visits as necessary.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
14 Dec 2022
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