Saudi Arabian dairy company Almarai has received a US$100m loan from the European Bank for Reconstruction and Development.
It plans to use the money – a long-term loan – to boost its Egyptian dairy subsidiary Beyti and its Jordan-based juice business Teeba. Some $90m is earmarked for Beyti and $10m for Teeba.
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The plan is fund production capacity expansion, in the case of Beyti, and to strengthen Teeba’s capital base and fund its working capital needs.
Almarai said it hopes that the loan will help strengthen Beyti’s links with local farms in Egypt by increasing the number of them that adhere to its procurement rules and to help “transfer know-how” to local farmers in Jordan.
It will also be used to support the expansion of Beyti’s exports to foreign markets and to aid foreign direct investment inflows into both the Egyptian and Jordanian dairy and juice sectors.
Both Beyti and Teeba are majority owned and controlled by Almarai via a 52% stake while the remaining 48% is held by US food and beverage giant PepsiCo.
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By GlobalData
