Edita II

active

The proposed investment consists of a corporate loan of up to US$45 million by IFC to support Edita Food Industries S.A.E. (“Edita” or the “Company”) with Foreign Exchange (FOREX) liquidity needs for (i) working capital for importing production inputs and meeting operational expenses; (ii) addition of production lines to existing factories in Morocco and Egypt, and maintenance capital expenditure (CAPEX) investments in Egypt; (iii) CAPEX requirements for the construction of three pre-treatment/ treatment plants at three existing factories in Egypt (iv) strategic regional expansion in priority markets in the Middle East and sub-Saharan Africa; (v) partial refinancing of existing debt (the “Project”).  Edita’s operational footprint includes five production factories in Egypt, one in Morocco, and a network of distribution centers in both countries. All the production factories are located within industrial zones. Its product segments include cakes, bakery, rusks, wafers, candy, and biscuits targeting broad population segments. Edita is an IFC’s portfolio client (https://disclosures.ifc.org/project-detail/ESRS/40991/edita). Edita has committed to an ESAP in 2019, which is still under implementation, and has encountered some delays for actions, including on wastewater management and supply chain risk assessment. As such, its E&S performance needs improvements through the completion of the 2019 ESAP and complemented by the ESAP agreed under this proposed investment.