Borges

Location:

Tunisia

Project number:

47462

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

08 Jul 2015

Status:

Disbursing

PSD disclosed:

03 Jun 2015

Translated version of this PSD: Arabic

Project Description

 
The EBRD is considering providing a loan of up to EUR 15 million to the Spanish company Pont Family Holding, S.L. (“Borges” or “Borges Group”) for subsequent on-lending to Société Les Huiles Borges Tunisia S.A. and Société Borges Tunisie Export S.A., the Tunisian subsidiaries of Borges Group (together the “Ultimate Beneficiaries”). The loan would provide stable financing for the increasing sourcing of olive oil from Tunisian farmers while targeting the export market.
 

Transition Impact

The expected transition impact of the project will derive from the following: (i) As part of the project the company will increase the share of bottled olive oil in total exports of its Tunisian subsidiaries, hence creating more value in the Tunisian olive oil value chain, (ii) A policy dialogue involving the EBRD, the FAO and other sector players will be launched, focusing on the development of an action and recommendations’ plan geared towards further development of the Tunisian olive oil sector, and (iii) The transfer and dispersion of skills through a technical cooperation programme, aiming at transferring best agricultural practices to Tunisian olive farmers.
 

The Client

 
Borges, a privately held company, is headquartered in Lleida, Spain, and is one of the world leaders in packaged dried fruits and nuts and the largest Spanish exporter of bottled olive oil.
 
The Ultimate Beneficiaries of the loan, Borges Tunisia and Borges Tunisia Export, are majority owned subsidiaries of Borges Group and specialise in the sourcing, bottling and exporting of olive oil.
 

EBRD Finance

 
Up to EUR 15 million 3-year revolving loan.
 

Project Cost

 
EUR 50 million
 

Environmental and social categorisation, impact, and mitigation
 

The project has been categorised B in accordance with the EBRD 2014 Environmental and Social Policy. The project, comprising of a working capital loan, will not result in change of the company operations or production capacity. The EBRD environmental and social due diligence (ESDD) showed that potential impacts associated with the company's operations are limited in nature and well managed.
 
During due diligence it was demonstrated that Borges Group and its subsidiaries Borges Tunisia and Borges Tunisia Export have assigned dedicated staff to manage environmental and social impacts and risks and have adopted environmental and social management systems that are compliant with EBRD Performance Requirements. Borges Group is committed to implementing across their operations the principles of the United Nations Global Compact covering human rights, labour, environment and anti-corruption as well as publishing relevant reports regarding their progress on CSR issues. Borges Tunisia is certified in accordance with ISO 9001, ISO 14001, ISO 22000 and OHSAS 18001. Due diligence also identified that the Company is continuously improving the ways in which it addresses risks related to labour conditions and environmental practices within its supply chain, through implementation of the Group's good practices and quality cooperation with local olive oil mills, as well as through the timely implementation of the Environmental and Social Action Plan agreed for the initial working capital loan in 2012, notably the integration of E&S considerations in their supplier procedures, requirements, and audit protocols.
 
The new ESAP for the project represents an update of the previous action plan and reflects those remaining items that still need to be delivered:
 
(i) to carry out the sustainability study in cooperation with its 20 partner mills and
 
(ii) use the findings to further improve existing procedures and management systems, and
 
(iii) to develop and implement a formal grievance mechanism for its stakeholders, including the farmers in their supply chain.
 

Technical Cooperation
 

The Project entails two technical cooperation programs funded by the EBRD Shareholder Special Fund and to be implemented under the EBRD – FAO framework. The first programme deals with the proposed policy dialogue targeting the development of an action and recommendations’ plan for the development of the Tunisian olive oil sector.
 
The second programme deals with transfer and dispersion of skills focusing on transfer of best agricultural practices to Tunisian olive farmers.
 

Company Contact
 

Borges International Group
Finance Department,
Calle Flix 29, 43205 – Reus, Spain
Tel: +34 977 309 000
Email: info@borges.es
 

Business opportunities

For business opportunities or procurement, contact the client company.

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