Habesha (IFC-41561)

Countries
  • Ethiopia
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.
Borrower
HABESHA BREWERIES SHARE COMPANY
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
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)
$ 79.18 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported Euros 70
Converted using 2018-12-17 exchange rate.
Project Cost (USD)
$ 186.64 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported Euros 165
Converted using 2018-12-17 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 14, 2019

Disclosed by Bank Dec 10, 2018


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Project Description

The proposed IFC investment is to provide a €70 million syndicated senior loan facility to Habesha Breweries S.C., to support their €165 million capacity expansion program, which will increase Habesha’s brewing capacity from an original (2015) 0.3 million hectoliters (capacity in 2018 is currently at 1.2M hectoliters) to 4.5 million hectoliters by 2025 (“the project”). Habesha is 60% owned by Bavaria Overseas Breweries B.V. (“Bavaria” or the “sponsor”), 10% by Linssen Investment (a Dutch rose grower based in Ethiopia) and the remaining 30% is owned by 8,000 Ethiopian shareholders. The expansion will increase the original 7ha footprint of the brewery by a small amount (some 200 meters in one direction beyond the current fence line) and will include the construction of a 3rd brew house, additional bottling lines, additional/reconfigured office space, new malt handling silos, additional cylindrical-conical fermentation tanks (CCTs) and bright beer tanks (BBTs), a new waste water treatment plant (already under construction alongside the existing WWTP) and a new perimeter road and fence to ensure efficient and safe movement of increased truck traffic within the premises.

Investment Description
  • International Finance Corporation (IFC)
Private Actors
  • Bavaria Overseas Breweries B.V. -- Parent Company
  • Habesha Breweries S.C -- Implementing Company
  • Linssen Investment -- Parent Company

Habesha Breweries S.C. (‘the company’), includes a brewery located 3km south of the town of Debre Birhan, in the Amhara Regional State North Shoa Zone, Basona Warena woreda, Ethiopia, 120km north west of the capital, Addis Ababa. The company also has a head office in Addis Ababa. The company is one of the larger brewers in Ethiopia and distributes its beer to just under half of the geographic area of the country. The brewery was constructed between 2012 and 2015, brewing and packaging the first brew in June 2015.

Contact Information

No contact information provided at the time of disclosure

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