GTST Addax WAF and Mauritania 2023

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The proposed IFC investment would be a reapproval for a 3-year funded participation in two syndicated borrowing base trade finance facilities (“Facilities”), arranged by Société Générale Corporate & Investment Banking (“SG CIB”) for Addax Energy S.A. (“Addax” or “AESA” or the “company”), an existing IFC client. The Facilities will be for up to US$40 million each and will be renewed annually (the “Project”). The Facilities will enable the import of petroleum products to West Africa and Mauritania. The West Africa Facility will finance the import and storage of products in Benin, Côte d’Ivoire, Senegal and Sierra Leone, and the sales to importers and Addax subsidiaries in these four countries and other African countries primarily in International Development Association (IDA), such as Burkina Faso, Gambia and Mali. The Mauritania Facility will finance the purchase, transit, storage, and sale of petroleum products in Mauritania. Addax is the trading arm of Oryx Energies SA (Oryx; https://www.oryxenergies.com/), a Swiss company, majority-owned by a private investment group. The main operations of this trading project consist of unloading, storage, and loading of energy products at storage terminals in the abovementioned West African countries. Oryx owns storage terminals in Benin, Senegal, and Sierra Leone. Storage tanks in Côte d’Ivoire for this project are located inside a partner company’s terminal, which is adjacent to Oryx’s own facility. Storage tanks in Mauritania are owned by the Government of Mauritania and managed by government-owned management companies. All terminals are served by networks of pipelines linking the storage farms to the jetties. For the West Africa Facility, the storage capacities are approximately 63,000 m3, 5,000 m3, 138,500 m3 (including 49,000 m3 at Dakar Port and 89,500 m3 at Bargny Port), and 66,000 m3 at terminals in Benin, Côte d’Ivoire, Senegal, and Sierra Leone, respectively. For the Mauritania Facility, the storage capacities are approximately 152,000 m3 and 60,000 m3 at the two separate terminals in Nouadhibou and Noukchott, respectively. All terminals are located inside port/industry zones and there is no residential community near any storage terminals. The environmental and social (E&S) risks and impacts for the terminals and associated infrastructure will be managed by Oryx at the Benin, Senegal and Sierra Leone terminals, the partner company at the terminal in Côte d’Ivoire, and by the relevant management companies at the terminals in Mauritania.   Addax is an existing IFC client and IFC has been a lender for both Facilities previously.