Bajrang International (FZC)
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Bajrang International FZC (“BIG”) is an agricultural value chain, storage units, processing player in Africa for various agricultural commodities. Founded in 2009, the operations started in Malawi and has now expanded to Mozambique, Tanzania, Nigeria, Zambia, and United Arab Emirates. The activities of the Group are organized under 3 core business clusters: (1) Agro Commodities (sourcing, processing, and distribution for domestic sales and export), (2) Packaging (manufacturing of packaging bags for crops), and (3) Construction (engineering and construction). BIG owns and manages 13 processing plants, 112 warehouses and satellite centres. It engages over 200,000 smallholders and creates over 2,000 local jobs.
What is our funding objective?
Proposed investment is a USD 15mln senior secured loan to BIG, to finance the capital expenditure in Malawi, Mozambique, and Tanzania (the “Project”). The proceeds will be used to build additional processing plants and warehouses, increasing value addition in origin countries and meeting increasing demand for food.
Why do we fund this investment?
BIG works closely with local farmers and plays an important role to improve the standard of living of smallholder farmers. It is also an important employer in Malawi and Mozambique. With FMO’s investment in the project, 700 new jobs will be created locally, adding further value for the economy. The transaction qualifies as Reducing Inequality as 100% of our financing will be used in Malawi, Mozambique and Tanzania, which are all Least Developed Countries.
What is the Environmental and Social categorization rationale?
E&S categorization B+, FMO’s environmental and social due diligence indicates that the intended investment will have impact which must be managed in a manner consistent with the following Performance Standards: IFC PS1-5 is applicable to this project. PS6 is triggered mainly due to impacts from wastewater management and the potential indirect impact of the primary supply chain. PS7 and PS8 are considered not applicable to the company operations.
- Website customer/investment
- https://www.bigworld.net/
- Region
- Africa
- Country
- Africa
- Sector
- Agribusiness, Food & Water
- Publication date
- 12/6/2022
- Effective date
- 12/13/2023
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
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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) - B+