Robust International Pte Ltd (FMO-62505)

Countries
  • Burkina Faso
  • Ivory Coast
  • Mozambique
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
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 15, 2023
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
Robust International Pte. Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 7.50 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.
Project Cost (USD)
$ 50.00 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.
Primary Source

Original disclosure @ FMO website

Updated in EWS May 31, 2024

Disclosed by Bank Jul 18, 2023

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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 the Bank’s website, the proposed financing is earmarked for Burkina Faso, Cote d'Ivoire and Mozambique. FMO is the mandated lead arranger for a USD 50mln senior secured facility (on a best-efforts basis) composed of USD 40mln for capital expenditure (land, building warehousing facilities, machinery, and equipment) and USD 10mln for working capital. The facility will be funded by FMO-A (USD 15mln), Building Prospects (USD 10mln) and FIM funds (USD 15mln). FIM funds are funds serviced by FMO Investment Management and share an emerging market focus and the combined objective of investing for both financial returns and development impact. In addition, it is expected that a European DFI will participate for USD 10mln.

As an agricultural commodity trading company, Robust fits into the strategic plan of FMO through engagement, directly/indirectly, with smallholder farmers and supporting global food security. The investments in processing facilities will increase higher quality labour, add value to local products and reduce transportation. This supports economic growth in the region and increasing tax income for the three countries. The proposed blended financing will provide Robust with long-term financing for its capex investments and working capital in two LDC's (Burkina Faso and Mozambique) and in Cote d'Ivoire. Such long-term financing and working capital for perceived greenfield projects is not available from commercial lenders.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This concerns an E&S B+ categorised investment. The sourcing and processing of cashew nuts in Cote d'Ivoire and sesame seeds in Mozambique and Burkina Faso have potential adverse E&S risks which extend beyond the site boundary but can be minimized through relevant mitigation measures. Main E&S risks of this investment include the labour and working conditions, climate change risks, supply chain labour and biodiversity risks, all exacerbated by the contextual risks of the countries in question. 

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

A USD 50mln senior secured facility (on a best-efforts basis) composed of USD 40mln for capital expenditure (land, building warehousing facilities, machinery, and equipment) and USD 10mln for working capital. The facility will be funded by FMO-A (USD 15mln), Building Prospects (USD 10mln) and FIM funds (USD 15mln).

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.

Robust International Pte. Ltd. (Robust) is a multinational agri-commodity processing & import-export business with its headquarters in Singapore. It has a vast operational network and presence in several countries across Africa. Its portfolio includes a wide variety of agricultural commodities with a focus on cashew and sesame seeds. The company is transforming from a traditional merchant to an end-to-end integrated supply chain company.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Robust International Pte Ltd Client -

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.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

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How it works