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Saudi Arabia’s Almarai, the largest dairy company in the Gulf states, has received a loan of up to $100 million from the European Bank for Reconstruction and Development (EBRD).
The proceeds from the loan will be contributed to Beyti and Teeba, the company's dairy and juice subsidiaries in Egypt and Jordan respectively, a statement by EBRD said.
Beyti will benefit from up to $90 million to fund its dairy and juice production capacity expansion and growing capital needs. Teeba will receive up to $10 million to strengthen its capital base and fund its permanent working capital needs.
The EBRD statement said that the loan will help in strengthening backward linkages to local farmers with an increase in the number of partner farms in Egypt that will comply with Beyti's strict procurement rules and the transfer of know-how to existing local farmers in Jordan.
And the loan will also help in supporting the expansion of Beyti's exports to foreign markets and favouring FDI inflows in both the Egyptian and Jordanian dairy and juice sectors.
Saudi food producer Savola Group, the Kingdom’s largest food products company, is the biggest owner in Almarai’s share capital (34.52 percent).
Almarai had reported an 11.93 percent drop in Q2 2019 net profit to 582.5 million riyals ($155.28 million), from 661.41 million riyals in Q2 2018.
(Writing by Gerard Aoun, editing by Seban Scaria)
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© ZAWYA 2019
