Pearl Dairy IV (IFC-47227)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kenya
  • Uganda
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
May 6, 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
Maziwa, Pearl Dairy Farms Ltd., Musty Distribution 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)
$ 35.00 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)
$ 35.00 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
Campaign Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 10, 2024

Disclosed by Bank Apr 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.

According to the IFC, the proposed investment consists of up to US$35 million senior loan package to Maziwa and its subsidiaries (Pearl Dairy Farms Ltd or “PDFL” and Musty Distribution Limited or “Musty”, together “Pearl Dairy” or “the Company”) to finance the Company’s (i) capacity expansion plans in Uganda and in Kenya (US$ 21 million) including the upgrade and capacity increase of the powder milk plant in Uganda, and the acquisition of a packing plant in Kenya, and (ii) refinancing of existing Standard Chartered Bank loan in Uganda (US$ 14 million).

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, the Company was founded in Uganda by Mr. Kotecha and Mr. Kapoor, long-experienced businessmen in the region. In 2019, TPG Rise Fund, an impact Private Equity fund managed by global asset manager TPG, became a shareholder alongside the founders.
Founded in 2009, Pearl Dairy is Uganda’s largest dairy processor and the second largest in East Africa. The company operates a milk processing facility in Mbarara district, Uganda.
Pearl Dairy is also registered in Kenya under the name “Musty Distribution”.

 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Musty Distribution Ltd. Client Agriculture and Forestry
- - - - Pearl Dairy Limited Client Agriculture and Forestry
- - - - TPG Investor Finance

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: 202-473-3800
Fax: 202-974-4384

Borrower - Maziwa:

Rohit Rajasekharan - Chief Transformation Officer
Phone: +971 55 361 3246
Email: rohit@pearldairy.com
Address: Plot 2, Upper Kololo, Kampala, Uganda
Website: www.pearldairyfc.com / https://latomilk.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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