Olam Palm Gabon

pending

Olam Palm Gabon S.A. (“OPG” or the “Company”) is a palm oil company in Gabon established in 2011 as a joint venture between food and agribusiness company Olam Global Holdings (60%) and the Republic of Gabon (40%) to develop and operate palm oil plantations in Gabon.  The Company’s has developed six plantations covering 63,330 ha of land, associated crude palm oil (“CPO”) mills, a refinery, and other associated facilities (the “Project”). The plantations consist of ca. 57,300 ha in Awala, Mouila and Ndende developed from a greenfield stage (now fully planted), and about 6,000 ha in Makouke acquired from SIAT Gabon in 2016.  About 106,000 ha (50% of the total concessions awarded to OPG) are set-aside for the voluntary protection of High Conservation Value areas, including community use zones. The proposed IFC investment is a project finance loan with use of proceeds to support an investment of up $350 m to Olam Palm Gabon (“OPG” US$350m) of which US$150 m would be from IFC’s own account and the remaining amount to be syndicated and financed by IFC’s Parallel lenders. The proceeds will be used for (i) the maintenance of the entire palm oil project which includes OPG’s 63,330 ha of developed palm oil plantations (Awala, Makouke, Mouila Lot 1, 2 and 3, and Ndende), three palm oil mills and kernel crushing plants (KCPs) at Awala, Mouila Lot 1 and 3, crude palm oil (CPO) refinery in Lambarene, and all ancillary facilities (e.g. biogas co-generation power plant at the Awala mill, 24,000 ha drip irrigation system at Makouke and Mouila Lot 1, 2 and 3, CPO bulking station at Owendo port, worker’s accommodations, Crop Protection Products (CPP) and fertilizers warehouses, and maintenance workshop), (ii) capital expenditure (CAPEX), including the construction of a bio-diesel plant and refinery at Owendo port, construction of a 4th mill at Mouila Lot 2 or 3, including a kernel crushing plant, roll-out of the remaining 20,000 ha of drip irrigation project at Makouke and Mouila plantations, biogas co-generation power plants at three mills, namely Mouila Lot 1, 3 and at the proposed 4th mill, and other maintenance, logistics, and building additions/upgrades) (the “Project”), and (iii) partial repayment of the shareholder loan from the sponsors.