The European Bank for Reconstruction and Development (EBRD) announced providing the International Company for Agricultural Industries Projects (Beyti) with a loan of up to $44 million (LE 786.31 million).
“The loan includes a committed tranche of up to LE 150 million and an uncommitted trancheof up to $35.5 million or the Egyptian pound equivalent,” EBRD clarified in a statement.
The statement read that the funding will enable the company to refinance existing short-term loans with a longer tenor loan more suitable for its investment and development phase.
It will also fund new investments to expand the company’s production and logistical capacities to cope with the rapidly growing national and regional dairy and juice sectors in Egypt, according to the statement.
The EBRD’s investment will also support market expansion of the dairy and juice sectors in Egypt by strengthening backward and forward linkages.
This includes increasing production of raw milk and fruit concentrate at local dairy farms and juice concentrate producers, and expanding Beyti’s logistical capacity in both sectors by increasing the number of distribution centres and delivery capacity, hence achieving a higher number of sales points in the country.
The statement referred to Beyti’s target to reduce its carbon footprint with more efficient use of water and energy and the deployment of renewable energy sources, noting that plans include shifting to the use of solar energy and improving waste water treatment which in turn reduces carbon emissions.
“We are very happy with our agreement with the EBRD that will create new opportunities for our business. Partnering with a financial institution that puts such focus on promoting environmentally and socially sound and sustainable development is of added value to any business,” Chief Executive Officer of Beyti Mohamed Badran said.
For his part, EBRD Head of Agribusiness for Southern and Eastern Mediterranean (SEMED) Tarek el-Sherbini said: “We are extremely pleased with the signing of our first project with Beyti and with two major international shareholders, Almarai Company, and Pepsico. We look forward to increasing strategic cooperation in Egypt and other common countries of operations.”
Beyti is one of the largest producers of milk, juice and yoghurt in Egypt, targeting a rapidly rising population market of more than 90 million consumers and catering to different consumer profiles. The market size makes the development and further expansion of the Egyptian agribusiness sector crucial.
Almarai Company, food producer headquartered in Saudi Arabia, owns 52 percent of Beyti, while PepsiCo Inc., producer of beverages and snacks, owns the other 48 percent.
Egypt is a founding member of the EBRD and has been a country of operations since 2012. To date, the bank has invested over €4 billion in 85 projects in the country. The bank has also provided technical assistance to more than 700 small and medium-sized local enterprises.
