DFF - Dislog Group S.A

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of an equity investment of USD 25m in favour of Dislog Group S.A (the "company"), a leading Full-Service Provider in Morocco's Fast-moving consumer goods (FMCG) and healthcare markets.

Project ID 55591

Status Approved

Location

Morocco

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

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

Company Contact Information

Zakaria Jerrari
z.jerrari@dislogroup.com
https://dislogroup.com/en/home/

Project ID 55591

Status Approved

Location

Morocco

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

10 Jan 2025

Disclosure date

21 Jan 2025

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.

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

DFF - Dislog Group S.A (French) (PDF, 0.43MB)

Project Description

Provision of an equity investment of USD 25m in favour of Dislog Group S.A (the "company"), a leading Full-Service Provider in Morocco's Fast-moving consumer goods (FMCG) and healthcare markets.

Project Objectives

The funds will be allocated towards financing the Company's Mergers and Acquisitions (M&A) strategy and reducing its leverage.

Transition Impact

ETI score:84

In line with the Fast Co-Investment Process, the Project will contribute to the TI objectives of the EBRD's existing fund investment in SPE AIF I (OPID 49079) under the Resilient and Competitive qualities, mainly through the contribution to the fund-level return objectives and by enabling synergies and enhancing the corporate governance.

Client Information

DISLOG GROUP SA

Dislog Group S.A, the main operating entity of Dislog Group, was founded in 2005 by Moncef Belkhayat. Dislog Group is a leading Full-Service Provider in Morocco's FMCG and healthcare markets. Dislog Group is majority owned by H&S Invest Holding ("H&S"), a diversified Moroccan group.

EBRD Finance Summary

USD 25,010,000.00

USD 25 million equity investment (subject to the approval of the Moroccan Competition Council).

Total Project Cost

The transaction is part of larger equity investment alongside a consortium made up of SPE and IFC, Sanam Holding, Sanlam and the family holding (H&S).

Additionality

The Bank's additionality stems from the financial structure, as well as the EBRD's role in risk mitigation by providing an element of confidence to potential futur investors.

Environmental and Social Summary

The Project will finance the acquisition of four light manufacturing and distribution companies in sectors that are not associated with high E&S risks. The Investee, Dislog Group, is an existing client of the Bank and has successfully implemented the ESAP under the existing exposure (DTM 54395, signed on September 2023). ESDD has been carried out through questionnaires and interviews with the management of the Group and the new acquisitions. ESDD demonstrated that the project can be structured to meet EBRD PRs. The Group has a comprehensive E&S management system already in place, has obtained ISO 14001 for environmental management and plans to obtain ISO 9001 for quality management next year. The Group will cascade its ESMS to the new acquisitions as applicable, and will ensure that appropriate E&S capacity is in place to implement the procedures adequately. Dislog Group will include specific E&S considerations in its E&S internal due diligence process for company acquisition, including risks identification and mitigation. The Human Resources policy and procedures, including workers grievance mechanism, will be cascaded to employees and contractors of the new acquisitions. Specific provision for collective dismissals will be added in the policy. Even though no collective dismissal is foreseen by Dislog Group following the acquisitions, the latter would be managed according to EBRD PR2 if happening. The H&S procedures already in place within the acquisitions will be updated in line with the Group's E&S management system, following a risk assessment of the various production lines and warehouses. The new acquisitions are not anticipated to consume large amounts of resources, nor to produce large amount of waste. No impact on air is anticipated. However, Dislog Group will be required to monitor consumables and waste generated at group level, and to set annual targets. This will include recycling objectives for the packaging activities. The new acquisitions are located in urban or industrial areas, and no extension requiring land acquisition is foreseen. No impact on Cultural Heritage or biodiversity is anticipated. Dislog Group will need to strengthen its existing grievance mechanism and streamline grievance management per business activities. Dislog Group will also prepare and disclose annual sustainability reports to inform on E&S performance of the various business activities, including against Group's targets. An ESAP has been prepared for the Project and agreed with Dislog Group prior to approval. The Bank will monitor the E&S performance of the project and compliance with the Performance Requirements through annual reporting and visits to the new acquisitions as necessary.

Technical Cooperation and Grant Financing

n/a

Company Contact Information

Zakaria Jerrari
z.jerrari@dislogroup.com
https://dislogroup.com/en/home/

PSD Last Updated

21 Jan 2025

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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DFF - Dislog Group S.A

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

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)