Project detail - PLANTATIONS ET HUILERIES DU CONGO S

PLANTATIONS ET HUILERIES DU CONGO S

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Plantations et Huileries du Congo SA (PHC) is a Congolese company which operates three long established palm oil plantations in the Democratic Republic of the Congo (DRC) close to the river Congo. PHC produces mainly crude palm oil and palm kernel oil which is all sold domestically in the DRC.

What is our funding objective?

DEG, BIO, EAIF and FMO provide a long term loan facility in an amount of up to USD 49 million (DEG: USD 16.5 million, BIO: USD 11 million, EAIF: USD 5 million, FMO: USD 16.5 million). The funds of DEG, BIO, EAIF and FMO shall be used to finance investments into replanting, equipment, fertiliser and environmental and social governance.

Why do we fund this investment?

The financing secures approximately 3,800 permanent and up to 4,000 seasonal jobs in a least developed and post-conflict country. PHC estimates that a total of 45,000 people directly benefit economically and socially from its activities. These positive effects are even more significant given that the DRC has an underemployment rate of 82 per cent and a poverty rate of 63 per cent. The project improves the access of the population in the DRC to staple foods including fats, oils, and basic hygiene products including soaps and detergents while displacing high cost imports. Furthermore, PHC contributes to economic diversification in remote and underdeveloped regions. PHC provides, and is in the process of further restoring and developing, extensive social infrastructure, including health facilities, employee housing, schools, water supplies and roads at each of its three plantation sites. PHC is committed to implementing IFC/World Bank standards for environmental and social sustainability and achieving certification by the Roundtable for Sustainable Palm Oil (RSPO).

Website customer/investment
http://www.feronia.com/
Region
Africa
Country
Congo, the Democratic Republic of the
Sector
Agribusiness, Food & Water
Effective date
12/21/2015
Total FMO financing
USD 16.50 MLN
Funding
Building Prospects
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