Original disclosure @ IFC website
Updated in EWS Jun 29, 2022
Disclosed by Bank Jun 24, 2022
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According to bank provided information, the proposed investment consists of an up to 4-year, senior secured loan of up to US$60 million (the “Loan”) to HSA Foods under the IFC COVID-19 Emergency Response RSE Envelope (the “RSE Envelope”). The Loan will support HSA Foods in strengthening its liquidity. By funding its increased long-term working capital requirements, the Loan helps ensure continuity of and a sufficient quality supply of HSA Foods’ supply of staple foods in Yemen amid the continuing impact of the COVID-19 pandemic in a country already facing significant food and humanitarian crises.
Advisory services engagement is being considered in the following areas:
i) Energy and water efficiency / wastewater treatment solutions to reach optimum design for wastewater treatment at HSA Foods considering significant water scarcity issues in Yemen. Energy efficiency work would look into alternative generation solutions for the plants, including hybrid solar/thermal solutions.
ii) Gender diversity and carbon footprint: IFC is currently discussing the possibility of advisory engagements covering: (a) gender diversity and HSA Foods’ plans to increase women participation in the workforce, (b) carbon footprint engagement for HSA Foods and (c) low carbon roadmap.
The initial investment consisted of a US$75 million financing package to Hayel Saeed Anam (HSA or the Sponsor) Group’s food processing operations in Yemen (“HSA Foods” or “the Company”). The funds were used to finance the permanent working capital needs of HSA Foods which is producing necessary foodstuffs such as flour, sugar and dairy products for local consumption.
Please see the related public disclosure: https://disclosures.ifc.org/project-detail/SII/43466/hsa-foods-yemen
The proposed Loan consists of a US$20 million A loan up to US$40 million in B1 and Parallel loans for a total facility of up to US$60 million. Both the IFC A loan and B/Parallel loans will be supported by a concessional unfunded first loss guarantee provided by IFC acting as implementing entity of the IDA PSW BFF.
HSA Foods is comprised of six Yemeni companies which shall be co-borrowers of the financing: i) National Dairy and Food Company Taiz; ii) National Dairy and Food Company Hodaida; iii) Yemen Company for Sugar Refining; iv) Yemen Company for Flour Mills and Silos Aden; v) Yemen Company for Flour Mills and Silos Al Hodaida; and vi) Al Hodaida Flour Mills Co. Limited. These co-borrowers are majority owned by the Hayel Saeed Anam family.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|-||-||-||-||HSA Foods Group||Client||-|
Taiz – Al Houban, HSA manufacturing Complex, Yemen.
http://www.nadfood.com/index.php http://www.ycfms.com/ar/index.html http://www.ycfmshod.com/ http://www.ycsryemen.com/
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