The EBRD is considering to providing a US$ 20 million loan facility to Nestlé Egypt S.A.E. (“Nestlé Egypt” or the “Company”). The operation will enable the Company to finance foreign currency working capital needs and investments into the expansion of the Company’s food production capacity (ice cream, confectionery) to meet the growing demand for the Company’s products in Egypt and neighbouring countries.
The envisaged capacity expansion will require an increase in the supplier and distributor base leading to backward and forward linkages as the local partners will have to meet the high health and safety as well as environmental and social standards of Nestlé (including Good Manufacturing Practices) and will receive necessary guidance and training from Nestlé for implementation.
Furthermore, the project will support the company in further implementing its gender policies, setting an example for the inclusion of women in the Egyptian labour market.
Nestlé Egypt S.A.E., a joint stock company incorporated in Egypt and specialised in food manufacturing and distribution (ice cream, coffee, milk powder, infant nutrition, bouillon, confectionery and others). The client is a 100% owned subsidiary of Nestlé S.A., Switzerland.
A US$ 20 million loan facility consisting of (i) a US$ 10 million long-term loan to finance capital expenditures and (ii) a US$ 10 million revolving short-term loan to finance working capital.
US$ 100 million.
Categorised B. Environmental and social due diligence has confirmed that the potential environmental and social impacts associated with the expansion of Nestlé Egypt’s existing ice cream and dry goods factories and introduction of new production lines are site specific, readily identified and addressed through appropriate mitigation and management measures. Both factories are located in designated industrial areas and none of the expansions, for which works are currently underway, will extend beyond the existing factory boundaries.
Nestlé Egypt implements parent company environmental and social (E&S) standards and has in place a robust and well developed approach to managing its environmental and social risks and impacts across the entire product value chain from farmer to consumer. Appropriate environmental, health and safety and food safety management systems and associated capacities and capabilities are in place and are certified to ISO 14001, OHSAS 18001 and ISO 22000 requirements. These are complemented with issue specific and monitoring and reporting procedures, environmental and factory efficiency targets and an active corporate social responsibility programme.
Nestlé employs a global procurement system and even though Nestlé Egypt procures some of its own raw materials, the supply chain is subject to global standards including compliance with Nestlé’s code of conduct, supplier verification through third party auditor and physical audits. An Environmental and Social Action Plan will be agreed with the Company prior to Board to ensure that the EBRD performance requirements are met.
Mr. Omar Samoud
Nestlé North East African Region
Summit 44 - El Shamaly 90 Street P. 0. Box No. 400 & 401
Al Tagamoaa El Khames
New Cairo 11835
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