A MAD 440 million loan to Dislog Group S.A. to support the company's acquisition of various companies in the FMCG and pharmaceutical sectors, as well as construction and acquisition of industrial and logistics platforms. The capex component also includes the installation of photovoltaic panels to supply a significant portion of the company's annual energy consumption from renewable sources and a green building certification.
The Project will enable the company to expand into the pharmaceutical sector and capture higher added value in the FMCG supply chains in Morocco. In addition, the loan will support the company's Green Economy Transition (GET) investments and help close gender gaps among its workforce.
ETI score: 67
The expected transition impact of the project derives from the "Competitive" transition quality, as it delivers operational improvements, and "Inclusive" transition quality, given the client's commitment to promote more open and equal economic opportunities in the group. The Project qualifies as 25 per cent GET-eligible thanks to the supported investments in solar panel installations and a green building certification.
DISLOG GROUP SA
Dislog Group S.A. is the main operating entity of Dislog Group. Dislog Group S.A consolidates and owns a diversified Moroccan business operating in various sectors, including the manufacturing and distribution of FMCG products. Dislog Group is mainly owned by H&S Holding ("H&S").
Building Logistics S.A. ("BLS"), a PropCo structure owned by H&S, develops and owns logistics platforms and commercial real estate assets in Morocco.
H&S is a diversified Moroccan group operating in five areas of activity (distribution and logistics, industry, real estate, communication, digital and press).
EBRD Finance Summary
MAD 440 million to be provided in two tranches to finance a part of the Project, specifically the acquisition of a company and construction and acquisition of industrial and logistics platforms and installation of photovoltaic panels.
Total Project Cost
Investment plan, which includes acquisitions and capital expenditures.
Financial additionality stems from the financial structure thanks to the EBRD's ability to provide financing in MAD.
Non-financial additionality stems from standards setting, as the project qualifies as Gender Transition Impact and GET-eligible.
Environmental and Social Summary
Categorised B (2019 ESP) and High-Medium risk in relation to acquisition of industrial companies with operations in pharmaceuticals and FMCG. The E&S issues associated with the Project include Occupational Health and Safety, labour and working conditions, HR policies and practices, collective bargaining agreement conditions, hazardous substances management, gender gap, management of contractors and suppliers mainly associated with supply of agricultural feedstock, energy and water efficiency, wastewater treatment and client's E&S management systems. In-house Environmental and Social (E&S) due diligence undertaken by ESD included a review of the Project questionnaire, current EHS and Quality Management policies, relevant procedures, E&S Impact Studies related to the expansion of operations and practices to assess existing E&S including DD practices for M&A.
An Environmental and Social Action Plan (ESAP) has been developed based on the ESDD. Noting the sensitivities of the Bank to supply chain risk, the EBRD supply chain management approach has been applied. Total power output from the project will be less than 5MW allowing the use of the Green Technology Selector to help choose approved suppliers. The project is considered aligned with the Paris Agreement for climate mitigation as it features in the joint MDB "aligned list". The project is deemed not significantly exposed to physical climate risks and is considered Paris aligned for climate adaptation. The project is 25 per cent GET-eligible based on the Capex plan for installation of PV panels and an energy efficient building certified under a scheme which meets GET eligibility.
Technical Cooperation and Grant Financing
Technical Cooperation support for this Project will be provided by the European Commission through the European Fund for Sustainable Development Municipal Infrastructure and Industrial Resilience (EFSD MIIR) Programme and FINTECC Programme funded through the EBRD Special Shareholder Fund (SSF).
Company Contact Information
409 Route El Jadida; Casablanca, 20410
PSD last updated
25 Apr 2023
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