RSE Covid HSA (IFC-46486)

Countries
  • Yemen
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
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
Mar 17, 2022
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
NATIONAL DAIRY AND FOOD COMPANY 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
  • 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)
$ 60.00 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.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 29, 2022

Disclosed by Bank Jun 24, 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 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

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

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.     

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.

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 -

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.

Nadfood
Ali Albodaigi
General Manager
+967-771-228-0000
Ali.albodaigi@hsa.com.ye 
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/ 

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