Pearl Dairy IV

active

The proposed IFC investment is a corporate loan of up to US$8.75 million to Pearl Dairy Farms Limited (“Pearl Dairy” or “The Company” or “PDFL”) for its expansion program in Uganda and Kenya. Founded in 2009, Pearl Dairy is Uganda’s largest dairy processor and the second largest in East Africa. The company operates a milk processing facility in Mbarara district, Uganda where it produces ultra-high temperature (“UHT”) milk, powdered milk, yogurt, and butter, among other products; and owns several brand names, including ‘Lato milk’. Pearl Dairy is also registered in Kenya under the name “Musty Distribution”. The use of proceeds for the expansion program includes the construction of a new powdered milk production unit with a biomass boiler on the existing premises in Uganda and the construction of additional milk collection centers (MCCs) and bulking centers.The company does not own any cattle farms; it sources its raw milk from over 10,000 smallholder farmers in Uganda including dairy cooperatives, individual farmers, and traders. Pearl Dairy is a former IFC portfolio client whose previous investment is available at https://disclosures.ifc.org/project-detail/ESRS/33405/pearl-dairy. The project’s E&S performance was satisfactory at exit.