📋 Tender Overview
Location:
Morocco
Project number:
55591
Business sector:
Manufacturing and Services
Notice type:
Private
Environmental category:
B
Approval date:
10 Jan 2025
Status:
Approved
English-language PSD published:
21 Jan 2025
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 c
