Wadi Group and Proparco sign $20 million loan agreement

Wadi Group recently signed a $20 million loan agreement with Proparco, the financing arm of the French Development Agency, to fund its expansion and growth plans in Egypt. The agreement was signed in the presence of Eng. Musa Freiji, Chairman of Wadi Group; Eng. Tony Freiji, CEO of Wadi Group; and Mr. Ramzi Nasrallah, Vice President and COO of Wadi Group. On behalf of Proparco, the ceremony was also attended by Ms. Marie-Hélène Loison, Deputy Chief Executive Officer, Ms. Stéphanie Lanfranchi, Head of Corporate Division, Mr. Thomas Eloy, Regional Representative for Middle East and Caucasus, Mr. Sébastien Delannoy, Investment Officer and Mr. Jean-Pierre Marcelli, AFD Country Director. 

According to the agreement, Wadi Group will allocate the loan to finance its strategy announced in 2011, which includes the completion of the first phase of the phosphate facility, the completion of its investment in the Nile Company for Stevedoring and Storage, the expansion of its fish farm in Fayoum, the execution of the second phase of Wadi Al-Natrun olive pickling plant, the construction of the second feed mill to enhance the Group’s feed production as well as  the construction of the tomato concentrate production plant. In addition to the financial loan, Proparco and Wadi Group will cooperate on multiple levels, including development programs in the areas of corporate governance, sound environmental practices, international quality standards, management and economic advancement, as well as public health and human resource policies. 

“The ambition of Wadi Group management has no boundaries and is represented in the Group’s ongoing aspiration to expand its investments in the fields of agriculture, poultry and other industries,” commented Eng. Musa Freiji, Chairman of Wadi Group. “Wadi Group enjoys a solid relationship and a successful track record with financial institutions, which sends a vote of confidence in the Group’s overall operations and performance. Proparco’s approval to grant this loan to Wadi Group is the result of an in-depth financial and economic study of the Group’s position, which highlighted the strength and status of our management, productivity and marketing performance. Wadi Group appreciates the efforts of Proparco’s team in conducting the necessary studies preceding the loan approval. We highly value this loan, which will strengthen our long-lasting partnership and will foster new investments that will boost food supply and job creation as well as help uplift the Egyptian economy.” 

"In the current political and economic climate, investment needs in Egypt and more particularly in the agro-industry sector, are huge. Proparco is proud to support a major agro-industry player supplying top-quality food products to the local market. Its exemplary management of health, environmental and social issues makes it a partner of choice", explains Marie-Hélène Loison, Deputy CEO of Proparco. “Wadi Group contributes to disseminating high standards in food safety, especially with regard to limiting the spread of bird flu, by supplying healthy chicks to farmers and providing veterinary support. Moreover, Wadi Group has proven its ability to successfully expand and diversify its activities based on synergies with its core business lines.”

It is worth noting that Wadi Group has not only been committed to continue its strategy, but has also sought to attract foreign investments to support the Egyptian economy in the coming period. Proparco’s loan provides much-needed liquidity in foreign currency from a European finance institution and thus limits the burdens shouldered by local banks.