BCP CMGP RSF

pending

 The proposed investment consists of a package of two unfunded risk sharing facilities (“RSF A and RSF B”) for up to MAD370 million (equivalent to US$ 36.7 million) to cover the risk of a portfolio of loans issued by Banque Centrale Populaire (BCP), to finance the acquisition of photovoltaic (PV) and drip irrigation equipment from the “Compagnie Marocaine de Goutte-a-Goutte et de Pompage” (CMGP, or the “Company”) by farmers or distributors. The credit lines issued by BCP will either be (i) term loans to farmers or (ii) working capital facilities to Very Small, Small and Medium Enterprises (VSE/SMEs) distributing CMGP’s products (“CMGP’s distributors”).CMGP is established in Casablanca, Morocco since 1995 and specializes in the import, manufacturing, distribution, and installation of irrigation products (https://cmgp-cas.com/). The Company commercializes equipment manufactured in its SICDA factories (SICDA I, II and III) based in the Berrechid region, 16 km south of Casablanca. The factories manufacture irrigation equipment and piping, including polyvinyl chloride (PVC), polyethylene (PE) pipes and accessories used for water supply, urban sewerage, agriculture, or buildings, with a total annual production capacity of 35,000 tons of piping and a logistic platform of 80,000 m².Over the last 5 years, CMGP has expanded its business to become ‘CMGP Group’ (“the Group”), via horizontal integration with PHILEA in 2018 and ‘Comptoir Agricole du Souss’ (“CAS”) in 2021, both specialized in the agro-supply sector. By doing so, the Group has expanded its scope of activities to the storage and trade of Crop Protection Products (CPP), including pesticides, herbicides, and fungicides. IFC will not finance CPP distribution to the beneficiaries of this proposed investment.