RSE Almarai 3 (IFC-46920)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
Geographic location where the impacts of the investment may be experienced.
Specific Location
Cairo-Alexandria Desert Road, Nubaria, Beheira Governorate
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Dec 21, 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
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
  • 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)
$ 75.00 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.
Loan Amount (USD)
$ 75.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 14, 2023

Disclosed by Bank Sep 6, 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.

As stated by the IFC, the proposed investment is a senior unsecured A-Loan of up to US$75 million under the Fast-Track COVID-19 Facility to Almarai (https://www.almarai.com/en) for working capital needs to its existing operations in Egypt. Almarai’s operations in Egypt are managed by Beyti (https://beytiegypt.com/en/page/about-us), a subsidiary of International Dairy & Juice. Beyti is one of the largest producers of milk, juice, and yogurt products in Egypt.

The use of proceeds of the IFC investment under the COVID-19 Facility will not support any physical expansion of Beyti’s existing operations. The current operational footprint of Beyti includes one fully automated state-of-art production facility consisting of two plants located in Cairo-Alexandria Desert Road, Nubaria, Beheira Governorate. The facility produces a variety of dairy, juice, and dairy-based products to the highest standards of hygiene and food safety for domestic consumption and export.

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.

As stated by the IFC, headquartered in the Kingdom of Saudi Arabia, Almarai is the world’s largest vertically integrated dairy company and the region’s largest food and beverage manufacturing and distribution company. The Company operates in KSA, Egypt, Jordan, and other Gulf Cooperation Council (GCC) countries. It operates mainly in the dairy, juice, bakery, poultry segments, and is a market leader in most of its categories across the GCC. 

Almarai is listed on the Saudi stock exchange and the Company’s largest three shareholders are SAVOLA Group (35%), HH Prince Sultan bin Mohammed bin Saud Al Kabeer and related entities (24%), and the Saudi Agricultural and Livestock Investment Company (SALIC, 16%), with other/free float shareholders representing the remaining 25%. Beyti, is Almarai’s fully owned subsidiary in Egypt which produces a wide range of dairy products and juices for the Egyptian market.

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 Parent Company Agriculture and Forestry owns International Company for Agricultural Industrial Projects (Beyti) SAE Client Agriculture and Forestry
Saudi Agricultural and Livestock Investment Company (SALIC) Investor Agriculture and Forestry invests in Almarai Company Parent Company Agriculture and Forestry
Savola Group Investor Agriculture and Forestry invests in Almarai Company Parent Company 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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Almarai Company:

Imtiyaz Shaikh - Assistant Treasurer
Phone: +966569313108
Email: imtiyaz.shaikh3@almarai.com
Address: PO Box 8524 Riyadh 11492 Kingdom of Saudi Arabia
Website: https://www.almarai.com/en

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