Angel Yeast Egypt

Location:

Egypt

Project number:

49539

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

13 Dec 2017

Status:

Disbursing

PSD disclosed:

16 Feb 2018

Translated version of this PSD: Arabic

Project Description

Provision of USD 52 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 construction of a new yeast extraction plant and a wastewater treatment facility in the city of Beni Sef in Egypt, both located at the Borrower's original site.

Project Objectives

The Loan will be used to finance the construction and the commissioning of the new yeast processing plant of the Company and wastewater treatment facility in the city of Beni Suef in Egypt, both located at the Borrower's original site.

Transition Impact

The Project will contribute to the Integrated quality as it will support much-needed Foreign Direct Investment ("FDI") to the agribusiness sector of Egypt and to the region of Beni Suef and support the construction of storage infrastructure to expand exports. Under the Competitive quality, the Project will support job creation and training, enable the production of a new, higher value-added product (yeast extract) and contribute to increasing the production of organic fertilizer input out of  waste.

Client Information

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

USD 52,000,000.00

Total Project Cost

USD 52,000,000.00

Environmental and Social Summary

This Project was categorised B as the environmental and social risks associated with the Company's activities are site specific and readily addressed through standard mitigation measures. Environmental and Social Due Diligence (the "ESDD") on this Project was undertaken by an independent consultant and included meetings with Angel Yeast Egypt staff and site visit to the Company's manufacturing facility in Beni Suef.

The client has all the necessary permits in place, and the planned new yeast extraction plant was subject to an Environmental and Social Impact Assessment which received the government's approval in June 2017.

The facility is operated in high quality, environmental, health and safety standards, demonstrated by its certifications to ISO 9001 for quality, ISO 14001 for Environmental Management, OHSAS 18001 for Occupational Health and Safety; and ISO 22000 for Food Safety. The Company has the adequate resources in place and has a strong environment, and health and safety culture.

Water and electricity are sourced from the municipality, and all supply permits are in place. The Company monitors and reports on wastewater discharges and solid wastes. The new wastewater treatment plant that will be constructed under the Project will follow EU standards.

Angel Yeast Egypt employs around 370 people and is expecting to hire an additional 200 employees with the projected extension. The Company has HR policies and procedures that are in check with the national law and comply with the EBRD's Performance Requirements for Labour and Working Conditions.

The Project is generally aligned with the EBRD Performance Requirements ("PRs") and EU directives. There are some areas for where further actions are required to ensure that the PRs are met and those have been incorporated into an Environmental and Social Action Plan ("ESAP").

Actions in the ESAP include the development and implementation of Environmental and Social management plans; ensuring contractors' and suppliers' compliance with the Company's policies and procedures; developing a resource efficiency plan; enhancing the solid waste management plan; and improving their current stakeholder engagement activities.

Technical Cooperation

None.

Company Contact Information

Angel Yeast Co. Ltd.
Secretary of the Board
Zhou Bangjun
zbj@angelyeast.com

Angel Yeast Co. Ltd.
Securities affairs representative
Gao Lu
gaolu@angelyeast.com
 

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