39478 - Unimetco

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

39478

Company Name

UNIMETCO HOLDINGS LTD

Date SPI Disclosed

Jun 30, 2020

Country

Lebanon

Region

Middle East

Projected Board Date

Aug 15, 2020

Environmental Category

B - Limited

Status

Active

Last Updated Date

Jun 18, 2021

Department

Regional Industry MAS MCT

Industry

Manufacturing

Previous Events

Approved : Nov 3, 2020
Signed : Mar 26, 2021
Invested : Jun 16, 2021

Sector

Man-Made Fibers (Including Nylon, Polyester, Rayon, etc.)

Project Description

Unimetco Holding (“Unimetco” or the “Company”), a Lebanese incorporated holding company, is the largest independent manufacturer and system house for polyurethane and adhesives used in construction, footwear, appliances and furniture sectors in Middle East and North Africa region. The Company operates manufacturing facilities in the UAE, Egypt and Italy and distribution centers in Turkey, Algeria, and Jordan.

Unimetco is undertaking an investment plan to expand and establish i) polyester reactors and rigid capacity in Egypt and UAE, ii) system houses in Algeria and Nigeria, and iii) a packaging adhesives plant in Turkey. This investment plan, along with the associated permanent working capital requirement, constitutes the “Project”.

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

Development Impact

1- Employment Creation: The Project is estimated to create 120 direct jobs Emerging Markets. Furthermore, over 4,000 indirect and induced jobs along the value chain are expected to be created. 2- Value Chain Creation: Unimetco intends to source its raw materials locally / regionally based on availability. Increasing import substitution is expected to boost local production in appliances, adhesives and footwear sectors. 3- SME Creation: The expansion plan is expected to contribute to SMEs' growth under transportation, logistics and other services. 4- Climate Change Impact: The Project will mitigate climate impact through (i) use of PET scrap in its production, and (ii) production of insulation products promoting overall energy efficiency. 5- Fiscal Benefits: The Project will lead to positive fiscal impacts on host countries through taxes paid and support in foreign trade balance from decreased imports and increased exports.

1- Long-term Financing: Cross-border financing with comparable terms to the proposed IFC loan is not readily available in the region. IFC's loan will enable the Company to proceed timely with its expansion and to remain financially sustainable. 2- Political Risk Mitigation: Given the Group's limited exposure to Turkey, Algeria and Nigeria, IFC's support can help mitigate potential political risks associated with entering new countries. The Company may also explore political risk insurance with MIGA for the riskier markets. 3- Long-term Partnership: The engagement is viewed as the beginning of a potential long-term strategic partnership between IFC and the Company and collaboration in future projects and markets across the Middle East, Africa and Europe. 4- Environmental and Social (E&S) Performance: IFC's E&S expertise will ensure that the Company's operations and expansions are based on the highest relevant E&S standards. 5- Climate Change: The Group expressed interest in collaborating with IFC to support their SME clients in phasing out 141B blowing agents (reaction that depletes the ozone layer) from their facilities in line with the Montreal Protocol. These SME's are not eligible to obtain commercial financing and require around US$200-400k of credit lines to undertake this investment.

E&S Category Rationale / Risks and Mitigation

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability because the Environmental, Social and Health & Safety (ESHS) impacts related to the investment are limited, site specific, covering the footprint of existing brownfield assets, and the associated environmental and social (E&S) impacts can be managed through the implementation of appropriate mitigation measures. IFC’s review did not identify any significant adverse impacts or high-risk exposures.

Contacts

For Inquiries About the Project, Contact

BCI Holding S.A.
Karim Baalbaki
Chairman & Managing Director
+961 1 347 616
kbaalbaki@bciholding.com
6th Floor Baalbaki Bldg, Abdel Aziz Street, Hamra, Beirut, Lebanon
www.bciholding.com/

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

As per above

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

Governance Risk Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Disclaimer