The Omnia Group, in business since 1953, is a diversified specialist chemical services company providing customized solutions in the chemicals, mining and agriculture markets. The Group has also diversified outside of South Africa, becoming a pan-African presence in Mauritius, Malawi, Mozambique, Swaziland, Zimbabwe, Zambia, Namibia, Botswana, Mali, Tanzania, Kenya as well as Australia, France, Canada, New Zealand and Brazil.

Omnia Group is listed on the JSE in the specialty chemicals sector, with a market capitalization in excess of $270 million. The company has 43.6 million ordinary shares in issue. The main shareholders are institutional investors: Old Mutual 23%, Oasis 12%, Investec 8% and Dr. Marais (the founder) 13%.

In the proposed transaction, IFC would purchase and on-sell “future” CERs. IFC will not be financing the construction or operations of either plant.

39.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	39.0
Guarantee
Loan
Equity

* These investment figures are indicative

OMNIA is proposing to install a nitrous oxide (N2O) destruction facility at the tail end of their nitric acid plant in Sasolburg, Free State Province, South Africa. Sasolburg is located about 80 km south of Johannesburg.

The project would have a number of developmental impacts including:

- helping the company to capture a larger portion of the carbon-related value from the facility than would otherwise be possible;
- a strong contribution to improved environmental performance by lowering the nitrous oxide emissions from the Company’s plant;
- lowering the emission reduction compliance cost to the buyer;
- demonstration effect for other South African and Sub Saharan African companies to consider similar reduction measures.

IFC’s main role in the transaction is as an innovative financial intermediary. The market for carbon credit trading between developing and developed countries is growing rapidly and is of high strategic value for IFC’s member countries. IFC is in a unique position, given its project and credit analysis skills and understanding of the carbon market, to help develop this market on a sound basis. IFC would mitigate risk and add value to both the emerging market sellers, who would obtain a higher price than otherwise available, and the buyer(s) who would be able to buy CERs with confidence about delivery. IFC routinely uses its high credit rating to help developing country clients access the international derivatives market by intermediating between the client and market.

IFC’s review of this project included a site visit to Omnia’s Sasolburg, South Africa, factory and review of pertinent public and private documents. The Performance standards (PS) that are expected to be applicable for this investment may include:

- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement; and
- PS4: Community Health, Safety and Security.

This is a Category B project according to IFC’s Environmental and Social Review procedures. Omnia’s environmental management capacities and actions are mature, competent and well integrated into company operations. Omnia’s three principal industrial installations including Sasolburg, are ISO 14000 and OSHAD 18000 certified. In addition, the proposed project, upon implementation, will have a positive local and global environmental impact in that up to 98% of greenhouse gases currently emitted by the nitric acid manufacturing facility will be destroyed prior to environmental discharge.