Tropical Heat (IFC-38225)

Countries
  • Kenya
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 28, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
TROPICAL HEAT LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 3.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 4.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 14, 2017

Disclosed by Bank Aug 24, 2016


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Project Description
The proposed investment would comprise senior secured A Loans of up to US$3 million by IFC and up to US$1.5 million by the Global Agriculture and Food Security Program to finance the expansion plans (“the project”) of Tropical Heat Limited (“TH”, “Tropical Heat”, or “the company”). The existing production site in an industrial zone of Nairobi is congested and prohibiting further growth. Given the current infrastructural and operational constraints, the company has purchased eight acres of land to set up a new factory. With TH’s envisioned state-of-the-art factory, the company will be able to overcome logistical constraints, add production lines as needed (i.e. a new line for crisps) and thus fulfill its growth potential by capitalizing on its brand equity. In 2014, 70% of turnover was from assorted spices, and 30% was from savory snacks (e.g. potato chips, popcorn, rice cakes, etc.). The company exports to 10+ countries regionally and internationally, and will work on further boosting its export activity once the current production bottlenecks are reduced by the new larger factory. The proposed project will necessitate construction of a new processing facility, moving equipment currently used at the existing site to the new one, procurement of new equipment and selling of the current plant.
Investment Description
  • International Finance Corporation (IFC)
Contact Information
Daniel Nyange Tropical Heat Limited Address: 44804-00100 Email: mailto:production@tropicalheat.co.ke Phone: +254 733-885306 ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/