Louis Dreyfus Company Grain Egypt

Location:

Egypt

Project number:

48637

Business sector:

Agribusiness

Notice type:

Private

Target board date:

21 Sep 2016

Status:

Signed

PSD disclosed:

17 Aug 2016

Project Description

The EBRD is considering providing a USD 100m revolving facility to finance part of the working capital needs of Louis Dreyfus Company Group's subsidiaries active in Bulgaria, Egypt, Kazakhstan, Poland, Romania, Tajikistan, Turkey and Ukraine. The project is financing the working capital needs of the subsidiaries of Louis Dreyfus Company Group for the merchandising activities of its agricultural commodities in these countries.

Project Objectives

Working capital needs are seasonal and cover the purchase of agricultural commodities at prices that fluctuate throughout the year. The project is providing stable working capital financing for merchandising activities in countries where liquidity can be a constraint.

Transition Impact

The proposed project will enhance the role played by Louis Dreyfus Company Group's subsidiaries active in Bulgaria, Egypt, Kazakhstan, Poland, Romania, Tajikistan, Turkey and Ukraine, which contributes to supporting a market-based system in the agriculture sector. Strengthening the role of the private sector in the trade of specific commodities in these countries will improve efficiency while reducing food waste. The project aims to improve global food security by enhancing trade linkages and efficiency between Egypt, the world's largest grain importer, and some of its major suppliers.

Additionally, the project is expected to strengthen the EBRD's policy dialogue initiatives in the agriculture sector and provides an important demonstration effect in Tajikistan in terms of setting higher standards for business conduct.

Client Information

Founded in 1851 and active in more than 100 countries, Louis Dreyfus Company Group is a leading international merchant and processor of agricultural goods, originating, processing, merchandising and transporting approximately 81 million tons of products annually.

EBRD Finance Summary

Up to USD 100m 3-year revolving loan to partially  finance the working capital needs of Louis Dreyfus Company Group's subsidiaries in Bulgaria, Egypt, Kazakhstan, Poland, Romania, Tajikistan, Turkey and Ukraine.

Total Project Cost

Up to USD 300m
Note: Actual financing needs will fluctuate based on current commodity prices.

Environmental and Social Summary

Categorized B. The Louis Dreyfus Company Group is well known to the Bank through previous transactions and the company's management of environmental and social issues has always proved satisfactory to the Bank. The Louis Dreyfus Company Group has put in place a comprehensive world-wide Safety, Health and Environment (SHE) Management System with core elements on Leadership, Plant Inspections, Accident Investigations, Emergency Planning, Rules and Regulations, Training, Use of Personal Protective Equipment (PPE), Industrial Hygiene and Occupational Health, and Engineering Controls. EBRD has discussed the development and application of this system with the company and is monitoring the company's progress on its commitments. Full application of the system will ensure that the activities of the Company meet the Bank's Performance Requirements. The company will continue to provide the Bank with annual reporting on environmental and social issues associated with its operations.

Technical Cooperation

None.

Client Company Contact Information

Louis Dreyfus Company Suisse S.A
Financing & Treasury EMEA Region
Hervé Sahores
29, route de l' Aéroport, PO Box 236
CH-1215 Geneva 15
Tel: +41-58 688 26 66
E-mail: herve.sahores@ldcom.com

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For business opportunities or procurement, contact the client company.

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