Project detail - TULIP COCOA PROCESSING LTD.

TULIP COCOA PROCESSING LTD.

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Who is our client

Tulip Cocoa was established in 2006 in Nigeria in order to expand the production capacity of Dutch cocoa trader and producer Theobroma. Theobroma started as a cocoa butter trader in Amsterdam in 1922. Its main shareholder is the leading international commodity trader Armajaro Trading Ltd. Theobroma has expanded the range of cocoa products it trades and now has its own cocoa production facility so as to be able to supply high quality cocoa products regardless of general market trends.

Funding objective

The success of Tulip has led to the expansion and upgrade of its production capacity. The new investments will not only more than double the possible through-put volume of cocoa beans (30,000 metric tons instead of 12,000) as well as decrease the costs per metric ton by 50%, but also improve the quality of the semi-finished products. Investments will consist of, among others, warehousing capacity and infrastructure, drying equipment and blending units, a cocoa alkalization and sterilization unit and a cocoa butter pressing, filtering and filing installation.

Why we fund this project

Tulip cocoa is an established and successful company in Nigeria and the investments at hand are in line with the corporate strategy. Furthermore, there is synergy with other Theobroma projects and efficiency will be improved. The company is also committed to environmental and social issues, reflected by amongst others its dedicated sustainability manager. FMO’s involvement was highly additional since local commercial long-term financing is not available. FMO also helped to increase client awareness of the traceability of cocoa products in Nigeria and of the number of farmers producing for them.

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Date Total FMO financing
5/10/2013 EUR 2.80 MLN
Website client
http://www.theobroma.nl
Region
Africa
Country
Nigeria
Sector
Agribusiness, Food & Water
Signing date
5/10/2013
Total FMO financing
EUR 5.00 MLN
Fund
Fund Emerging Markets
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A