DCP DIRECT INVESTMENTS FUND I
Who is our client
Allseeds, founded in 2010, is an export-oriented infrastructure operator in the agribusiness sector located in the Yuzhny port of the Odessa region in Ukraine. It focuses on vegetable oils, by-products of their extraction and their derivatives. The company’s current lines of business are sunflower oil extraction, the production of sunflower meal, and the storage and transshipment of these products to large vessels in the Yuzhny port. It operates both as a crusher and a toller, while also providing it transshipment services to third parties.
Funding by FMO is used to increase Allseeds PPE capacity and its overall utilization rate of that PPE. The end objective is to realize the growth potential of the target due to its competitive advantages, from its logistics edge, management skills, and industry standing.
Why we fund this project
The investment supports the core strategy of FMO, by deploying capital in the “Circle around Europe” and in direct investments in Agricultural enterprises where capital is scare. Additionally, the investment will catalyze possible other sources of capital as part of the company’s continued growth strategy. Additionally, FMO has identified this investment with a new partner in Ukraine, Diligent Capital Partners, (“DCP”). In executing this investment FMO is also supporting the development of DCP as a potential future fund manager in Ukraine, thus supporting the PE market in this country. DCP will be engaged to not only identify investments but also to manage the investment both in the value creation and exit portion of the investment cycle.
Environmental and social rationale
“E&S Category is B+. Allseeds is a brownfield project. IFC PS 1-4 are applicable. General IFC EHS Guidelines for A and B+ projects and the sector-specific EHS guideline: Vegetable Oil Production and Processing are applicable. IFC PS 5 -8 are not applicable. IFC PS 5 is not applicable, as no physical or economical resettlement occurred for the development of this project; IFC PS 6 is not applicable due to the project being located in an industrial area with no rich biodiversity or conservation areas nearby; IFC PS 7 is not applicable as there are no indigenous people affected; IFC PS 8 is not applicable as there is no cultural heritage at the location nor in the vicinity. FMO will have a leading role in steering the implementation of the ESAP and monitoring the E&S performance of the Company. The core E&S opportunities identified, are the upgrade of the current E&S performance to meet the IFC Performance Standards. FMO can also assist the company in their efforts to improve further resource efficiency (potentially through CD).”
|Date||Total FMO financing|
|5/20/2022||EUR 0.05 MLN|
|12/15/2020||USD 20.00 MLN|
- Europe & Central Asia
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 16.20 MLN
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)