Angel Yeast Egypt Expansion

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a USD 40 million senior unsecured loan (the "Loan") to Angel Yeast Egypt (the "Company"), a fully-owned subsidiary of Angel Yeast Co. Ltd ("AY"). The loan will be used for the expansion of the Company's existing yeast production plant in the city of Beni Suef in Egypt, adding 20,000 tonnes of yeast production capacity.

Project ID 53800

Status Repaying

Location

Egypt

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Gao Lu
gaolu@angelyeast.com
angelyeast.com

Project ID 53800

Status Repaying

Location

Egypt

Business Sector

Food and Agribusiness

Notice Type

Private

Approval Date

05 Oct 2022

Disclosure date

14 Dec 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Angel Yeast Egypt Expansion (Arabic) (PDF, 0.53MB)

Project description

Project objectives

The Loan will be used to partially finance the extension and expansion of Angel Yeast Egypt's existing yeast production plant in the city of Beni Suef in Egypt: adding 20,000 tonnes of yeast production capacity, including 15,000 tonnes of dry yeast production capacity and 5,000 tonnes of yeast extract production capacity.

Transition impact

ETI Score:62

ject will contribute to the Integrated quality as it will support the expansion of storage infrastructure to increase the Company's export capacity.

Under the Competitive quality, the Project will support: (i) the diversification and enhancement of the Company's value chain by adding new private sector suppliers and improving their quality and operational standards, and (ii) strengthening the competitiveness of the Company through knowledge sharing and enhancement of the labour force's competencies, especially newly hired employees in the Beni Suef region.

Client information

ANGEL YEAST EGYPT COMPANY LIMITED

Angel Yeast Egypt is one of the leading yeast producers and exporters in Egypt. The parent Angel Yeast China Ltd. is the third largest producer and exporter of yeast in the world and the largest producer of yeast extract.

EBRD Finance Summary

USD 40,000,000.00

Total project cost

USD 80,000,000.00

Additionality

The additionality of the Project is expected through the following:

(i) Financing Structure: the Bank will provide a sizeable long term USD financing that is not widely available on the local market.

(ii) Risk Mitigation: Given the volatile political and economic environment in the region, the Bank's involvement will provide additional comfort to Angel Yeast Co. Ltd as it continues to invest and grow its exposure to the Egyptian market.

(iii) Standard setting: The Bank will support Angel Yeast Egypt as part of the Environmental and Social Action Plan (ESAP) to improve corporate climate governance across its operations in Egypt in line with leading international standards. The Bank's engagement with the Company will also ensure that the new production lines financed by the Bank and the operations of the factory achieve higher levels of resource efficiency by adhering to the best practice international resource efficiency management standards (ISO50001, ISO46001).

Environmental & Social Summary

This Project was categorised B (2019 ESP). Through the existing exposure, Angel Yeast has demonstrated overall compliance with the Bank's E&S Policy and the previously agreed E&S Action Plan (ESAP), and has been satisfactorily reporting on its E&S performance. The monitoring carried out thus far indicates no red flags or substantial gaps with EBRD's Performance Requirements. The E&S risks associated with the current transaction are site specific and readily addressed through standard mitigation measures.

The Environmental & Social Due Diligence (ESDD) for this Project was carried out in-house and was based on the findings of the 2017 independent ESDD, documentation review regarding the new facility, a site visit and interviews with the client's representatives. The planned new yeast extraction plant was subject to an Environmental and Social Impact Assessment, and is located within the current Company premises in the Beni Suef industrial zone and will not require any additional land acquisition. The Company has HR policies and procedures that are in check with the national law and comply with EBRD's PR2.

The production lines are in line with EU BAT and meet EU emissions standards, and the factory features biogas recovery for steam generation as well as waste water recycling. The new production facility is expected to produce about 75k tonnes of CO2eq per year stemming from the natural yeast fermentation process. The Company has therefore been required to prepare and implement a formal climate action plan to include an assessment of GHG emissions; identification and assessment of potential measures to reduce energy and water consumption and GHG emissions, and mitigate climate change risks in the short, medium and long term. An updated ESAP has been prepared integrating the above items as well as the requirement to manage new facility's resources in line with ISO50001 for energy management and ISO460001 for water efficiency management.

Climate resilience measures have been integrated into the Project design and through further commitments in the ESAP. The updated ESAP has been agreed with the client, and ESD will continue to monitor the Company compliance through the review of annual reports and site visits as necessary.

Technical Cooperation and Grant Financing

None

Company Contact Information

Gao Lu
gaolu@angelyeast.com
angelyeast.com

Implementation summary

PSD last updated

14 Dec 2022

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Angel Yeast Egypt Expansion

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)