10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

The project helps finance a Kenyan garments manufacturer to expand its operations. Economy-wide effects: The textiles and apparels sector is a strategic priority in Kenya's economic development agenda. The project is expected to have various positive economy-wide effects including (i) the direct creation of 3,700 formal manufacturing jobs, mostly for women in underserved population groups, and a larger number of indirect jobs, (ii) the generation of valuable foreign exchange earnings for Kenya from increased exports through the expansion of CMT operations. Stakeholder effects: The Project is expected to employ people primarily coming from underserved, low-income populations with limited education and skills, and no formal employment history. Beyond providing jobs, the IFC investment will help enhance employees’ technical and soft skills through various training programs and policies. Additionally, the Group is also committed to creating a more inclusive workforce, particularly for women. Assessment of Contribution to Market Creation - Competitiveness: The Project is expected to boost the Group's productivity, thereby improving Group's overall competitiveness. This improvement in a domestic apparel producing company will be achieved through a multi-pronged approach including optimization of sewing line staffing, automation of specific tasks and integration of real time data analytics. Furthermore, training local staff on these tools will create a pool of skilled professionals, benefiting the entire industry in Kenya. The project is anticipated to have meaningful demonstration effects, as improvements in productivity and export expansion are likely to encourage other domestic companies in Kenya's textile and apparel sector to adopt similar approaches.

Financial additionality - Financing Structure: (i) IFC will provide customized financing with two tranches to match the CMT ramp-up (in US$) with 7-year tenor (including 2-year grace period) which is not readily available to the Company in the local market; (ii) IFC will potentially provide concessional financing which will help de risk the project given the limited available security package. Non-Financial additionality - Knowledge Innovation and Capacity Building: IFC will help Royal strengthen the workplace policies for the female workforce (i.e. gender) through the Kenya2Equal program. Standard setting - During Project implementation and supervision, IFC will provide technical, environmental and social (E&S), health and safety expertise to improve the overall environmental and safety performance as well as introduce international best practices to the client.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.