Westfalia FIL

active

  The proposed US$100 million secured revolving facility (the investment) is part of a broader US$300 million syndicated facility led by a lead bank (the “Agent”) to Westfalia Fruit International Limited (“WFIL” or the “Group” or “Company” https://www.westfaliafruit.com/)) to finance the Company’s growth strategy. WFIL has embarked on a growth strategy which will involve making acquisitions, setting up new operations in new markets (such as ripening facilities, packhouses, etc.), expanding current operations (by adding packing lines, expanding ripening and marketing and distribution operations) and integrating its existing operations in North America and Europe. The maintenance of existing operations in South Africa and South America will be supported as part of this project along with enhancements to existing processing plants. The office in Kenya will be expanded and a ripening facility will be developed. Operations in India will be expanded (such as the company owned nursery and farm). Marketing operations, ripening and storage facilities in China will be expanded and/or created.  This facility effectively replicates the existing facility of which IFC (Project #40091) is a syndicate member and will use the existing agreement.  WFIL is involved in fresh fruit farming, trading, ripening, packing, further processing and distribution of mainly avocados in South Africa, EU, UK, North and South America; in total, managing orchards in over eight countries on four continents. Approximately 20-30 percent of the supply of avocados come from WFIL-owned or those owned by fully owned subsidiaries to WFIL; the rest is from long-established 3rd party suppliers. WFIL is a 100 percent owned subsidiary of Hans Merensky Holdings Pty Ltd (HMH1), a South African based Agribusiness Company. The proposed facility will be IFC’s 5th investment with the HMH Group. Previous investments are described here: https://disclosures.ifc.org/project-detail/ESRS/31557/hans-merensky; https://disclosures.ifc.org/project-detail/ESRS/34183/westfalia-fruto-mocambique-pty-ltd; https://disclosures.ifc.org/project-detail/ESRS/40091/westfalia-intl; and https://disclosures.ifc.org/project-detail/ESRS/42280/westfalia-moz-ii). Based on the review of existing investments, the company’s current E&S performance is judged to be satisfactory.