Project Almarai (EBRD-51068)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
  • Jordan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Completed
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
Oct 30, 2019
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
Almarai Company
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)
$ 100.00 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.
Project Cost (USD)
$ 100.00 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 @ EBRD website

Updated in EWS Aug 9, 2024

Disclosed by Bank Sep 26, 2019

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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 documents, the investment involves provision of a long-term loan of up to USD 100 million, in SAR equivalent, to Almarai Company, a leading dairy and juice producer in Saudi Arabia. The Company is incorporated in Saudi Arabia and listed on the Saudi stock exchange. Proceeds from the Loan will be contributed to Beyti and Teeba, the Company's dairy and juice subsidiaries in Egypt and Jordan, respectively.

Proceeds from the Loan will be used as follows: (i) up to USD 90m equivalent earmarked for Beyti to fund its dairy and juice production capacity expansion and growing working capital needs; and (ii) up to USD 10m earmarked for Teeba, to strengthen its capital base and fund its permanent working capital needs.

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

Borrower: Almarai Company ("Almarai"), a company incorporated in Saudi Arabia and listed on the Saudi Stock Exchange.

Beneficiaries: (i) International Company for Agricultural Industries Projects Beyti, a company incorporated in Egypt ("Beyti"); and (ii) Teeba Investments for Developed Food Processing ("Teeba"), a company  in incorporated Jordan. Both Beyti and Teeba are majority owned and controlled by Almarai via a 52% stake while the remaining 48% are held by Pepsico Inc ("Pepsico").

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Almarai Company Client -
Almarai Company Parent Company Agriculture and Forestry owns Beyti Egypt Subsidiary Agriculture and Forestry
Almarai Company Parent Company Agriculture and Forestry owns Teeba Subsidiary Agriculture and Forestry

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.

Imtiyaz Shaikh
Imtiyaz.Shaikh3@almarai.com
+966115286466
+966115286466
https://www.almarai.com/en/
P. O. Box 8524, Riyadh 11492 Saudi Arabia

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.

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How it works