Project detail - FLAMINGO EGYPT B.V.

FLAMINGO EGYPT B.V.

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Who is our client

Eagle Chemicals Group Limited – Mauritius (“Eagle”) – with operations based in Egypt – is North Africa’s largest solvent and water-based resin manufacturer with a 60% domestic market share. Eagle has highly diversified sales destinations exporting to more than 80 countries in Africa, Asia, South America and Europe. In line with global trends towards more environmentally friendly water-based resins, Eagle successfully ramped up its production volumes, capacity and exports of water-based products. The proportion of water-based vs. solvent-based will grow further during FMO’s holding period.

Funding objective

FMO will provide value added in the following areas: governance, commercial, ESG and sustainability, organization and management, finance and reporting.

Why we fund this project

FMO considers this an attractive investment opportunity as it provides us with a possibility to (i) back a regional market leader (60% domestic market share) in an attractive sector with a demonstrated resilient business; (ii) further support Eagle in strengthening its competitive positioning by various value addition initiatives including E&S and sustainability (move towards greener products).

Environmental and social rationale

E&S Category is A due to the sector specific risks of the chemical industry. IFC Performance Standards 1-4 are triggered whilst no resettlement or material biodiversity impacts are foreseen as the facilities are located in existing industrial zones. The main risks are associated with technical safety, occupational health and safety, resource efficiency and pollution prevention. This transaction would allow FMO to explore with the other shareholders further impact opportunities specifically in terms of sustainability and climate change (resilience and mitigation).

Region
Africa
Country
Egypt
Sector
Infrastructure, Manufacturing and Services
Signing date
5/4/2021
Total FMO financing
USD 14.65 MLN
Fund
FMO
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