El Sewedy Loan I (IFC-40767)

Countries
  • Egypt
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 20, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
EL SEWEDY ELECTRIC COMPANY
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • 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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 6, 2022

Disclosed by Bank Sep 2, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided information, the proposed investment is a senior financing package of up to US$300 million to El Sewedy Electric S.A.E (“El Sewedy” or the “Company”), a fully integrated energy solution provider with a diversified footprint across Africa, the Middle East, Asia and Eastern Europe, to finance its: (i) new solar independent power plants in Algeria, Côte d’Ivoire, Madagascar, Namibia, Niger, and other countries; (ii) maintenance capital expenditure as well as modernization and resource efficiency upgrades across the Company’s plants, mainly in Egypt; (iii) acquisitions and construction of new manufacturing plants in Egypt, Indonesia, Pakistan, and Tanzania, and possibly Ethiopia; (iv) manufacturing services, and/or equipment installations (such as light cables, meters, transformers, telecommunication equipment, traffic control systems, etc.); and (v) working capital for its manufacturing business and activities contemplated in (i)-(iv) above (the “Project”).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

IFC is proposing a 7-year senior financing package of up to US$300 million to support El Sewedy’s investment program over the next three to five years. The facility will consist of up to US$150 million A loan; and the remaining mobilized from commercial banks and Parallel Lenders. The proposed investment will be committed over two tranches of up to US$150 million each.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

El Sewedy was established in 1938 and is listed on Egypt’s stock exchange (“EGX”) since 2006.  The Company operates 22 production facilities and exports to 110 countries where it provides a variety of products and services including (i) complete cabling solutions for power and special cables (control, instrumentation, fibreoptic, winding and date), (ii) manufacturing of full range of transformers (power, dry and oil) including power and distribution transformers, (iii) manufacturing of smart meters, induction meters, residential and industrial meters, (iv) cable accessories including terminators, power cable joints, fiberglass poles, insulators and explosion proof equipment, and (v) development and delivery of electricity generating assets, transmissions and distribution networks and civil engineering work.

El Sewedy Family collectively owns 66.7% of the Company as follows: Mr. Sadek El Sewedy (25%), Mr. Ahmed EL Sewedy (25%) and Mr. Mohamed El Sewedy (17.7%), with the free float representing the balance (32.3%). Mr. Ahmed El Sewedy is serving as the Company’s CEO.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - El Sewedy Electric Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

El Sewedy Electric S.A.E
[Noha Agaiby]
[Investor Relations Director and Board Secretary]
[+202 27599700]
Noha.Agaiby@elsewedy.com 
Plot No. 27, North 90th St., 1st District, 5th Settlement, New Cairo – Egypt
https://www.elsewedyelectric.com 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries 

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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 

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How it works