Ethiopian poultry company in line for IFC loan
The IFC is considering to provide a loan of up to $10 million to EthioChicken Group, the leading producer of day-old-chicks and poultry feed in Ethiopia, focusing on selling these poultry input products to rural farmers.
IFC’s funding will be used to implement part of the group’s five-year programme. Particularly, use of IFC’s funds will be (i) capacity expansion that requires construction of two new breeding farms (60,000 bird capacity each) and one new hatchery facility; (ii) working capital for purchase of parent stock birds; and (iii) partial refinancing of an existing long-term loan.
The Group consists of (i) three operating companies in Ethiopia: AGP Poultry PLC, Mekelle Farms PLC and Andasa Poultry PLC; and (ii) two holding companies in Mauritius: Agflow Ventures and Agflow Poultry, which in turn are majority owned by (a) the founders’ investment vehicle company Flow Equity (60.4%), and (b) Arabica Investment (39.6%), a private equity fund. For the IFC loan, the three operating companies will be co-borrowers and the two holding companies will be guarantors.
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