Project detail - Robust International Pte Ltd

Who is our customer

Robust International Pte. Ltd. (Robust) is a multinational agri-commodity processing & import-export business with its headquarters in Singapore. It has a vast operational network and presence in several countries across Africa. Its portfolio includes a wide variety of agricultural commodities with a focus on cashew and sesame seeds. The company is transforming from a traditional merchant to an end-to-end integrated supply chain company.

What is our funding objective?

The proposed financing is earmarked for Burkina Faso, Cote d’Ivoire and Mozambique. FMO is the mandated lead arranger for a USD 50mln senior secured facility (on a best-efforts basis) composed of USD 40mln for capital expenditure (land, building warehousing facilities, machinery, and equipment) and USD 10mln for working capital. The facility will be funded by FMO-A (USD 15mln), Building Prospects (USD 10mln) and FIM funds (USD 15mln). FIM funds are funds serviced by FMO Investment Management and share an emerging market focus and the combined objective of investing for both financial returns and development impact. In addition, it is expected that a European DFI will participate for USD 10mln.

Why do we fund this investment?

As an agricultural commodity trading company, Robust fits into the strategic plan of FMO through engagement, directly/indirectly, with smallholder farmers and supporting global food security. The investments in processing facilities will increase higher quality labour, add value to local products and reduce transportation. This supports economic growth in the region and increasing tax income for the three countries. The proposed blended financing will provide Robust with long-term financing for its capex investments and working capital in two LDC’s (Burkina Faso and Mozambique) and in Cote d'Ivoire. Such long-term financing and working capital for perceived greenfield projects is not available from commercial lenders. The facility is eligible for 62% Reduced Inequalities label (SDG 10) due to investments in LDCs (Mozambique and Burkina Faso).

What is the Environmental and Social categorization rationale?

This concerns an E&S B+ categorised investment. The sourcing and processing of cashew nuts in Cote d'Ivoire and sesame seeds in Mozambique and Burkina Faso have potential adverse E&S risks which extend beyond the site boundary but can be minimized through relevant mitigation measures. Main E&S risks of this investment include the labour and working conditions, climate change risks, supply chain labour and biodiversity risks, all exacerbated by the contextual risks of the countries in question. The E&S Action Plan is focused on mitigating these risks by improving policy and procedures, protecting casual labour, working towards traceability and supplier management. Applicable IFC Performance Standards are PS 1 (Assessment and Management of Risks and Impacts), PS2 (Labour and Working Conditions), PS3 (Resource Efficiency and Pollution Prevention), PS4 (Community Health, Safety and Security), and PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) for the supply chains only. PS5 (Land Acquisition and Involuntary Resettlement) is not applicable as no relocation will take place, PS6 (Biodiversity) is not applicable for the company's own facilities as they do not pose a risk to biodiversity, PS7 (Indigenous Peoples) and PS 8 (Cultural Heritage) are also not applicable as there are no indigenous peoples living in the countries or areas of the company's activities, and no cultural heritage elements in Robust' facilities' footprint. Note that all investments will be managed in accordance with the IFC PSs, and an Environmental & Social Action Plan will be part of the agreement.

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