EBRD supports Egypt’s Beyti with $44m loan
The EBRD funding will enable Beyti to refinance existing short-term loans with a longer tenor loan more suitable for its investment and development phase. The loan will also fund new investments to expand the company’s production and logistical capacities as the national and regional dairy and juice sectors grow within Egypt.
Beyti, one of the largest producers of milk, juice and yogurt in Egypt, also aims to reduce its carbon footprint through increased water and energy efficiency, and the deployment of renewable energy sources. Plans include shifting to solar energy and improving waste water treatment to reduce carbon emissions.
The company is also working on enhancing equal opportunity policies and practices to increase women’s participation in the workforce. The company received an EBRD Environmental and Social Award for its work so far in developing a gender-equality action plan.
Beyti, which is 52% owned by Saudia Arabian dairy firm Almarai Company, and 48% by PepsiCo Inc., has a fully-automated facility on the Cairo-Alexandria Desert Road, which employs more than 3,000 people.
The EBRD said its investment will also support market expansion of the dairy and juice sectors in Egypt. This includes increasing production of raw milk and fruit concentrate at local dairy farms and juice concentrate producers, and expanding Beyti’s logistical capacity in both sectors by increasing the number of distribution centers and delivery capacity.
Mohamed Badran, CEO of Beyti, said, “We are very happy with our agreement with the EBRD that will create new opportunities for our business. Partnering with a financial institution that puts such focus on promoting environmentally and socially sound and sustainable development is of added value to any business.”
Tarek El Sherbini, EBRD head of agribusiness for the southern and eastern Mediterranean (SEMED) region, said, “We are extremely pleased with the signing of our first project with Beyti and with two major international shareholders, Almarai Company, and PepsiCo. We look forward to increasing strategic cooperation in Egypt and other common countries of operations.”
Assisting Egyptian business
To date, the EBRD has invested more than $4.5bn in 85 projects in the country. The bank has also provided technical assistance to more than 700 small and medium-sized local enterprises.