DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – provided ETC Group (“ETG”) with long-term working capital of up to USD 40m and syndicated a further USD 64.2m. Besides DEG, the consortium comprised Ecobusiness Fund Africa (Finance in Motion), Finnish DFI Finnfund and French DFI Proparco, as well as a tranche from EFP - European Financing Partners, the co-financing vehicle of European DFIs in cooperation with the EIB. DEG acted as mandated lead arranger.
"We are excited to partner with Export Trading Group in Malawi, Mozambique and Tanzania in their agri-commodity trading and processing operations", says Finnfund’s Associate Director Jari Matero. "It is important to support the agricultural commodity trade and the supply of key agri-inputs such as fertilizers to local farmers in this challenging situation. Over the past decades, Export Trading Group has played a pivotal role in agricultural development."
ETG has developed into a global player with a diverse portfolio of expertise across the agriculture industry, encompassing inputs, logistics, merchandising and processing and supply chain optimization.
ETG owns and operates more than 460 warehouses and over 120 processing plants. The facility will enable ETG to further stabilize and develop its business.
"ETG is proud to partner with four marquee DFIs to provide sustainability linked financing facility", says Anish Jain, Chief Treasury Officer at ETG. "This is a unique facility for African agriculture sector that will allow us to enhance collaboration with small-holder farmers to buy the staple food crops and increase farmers' linkages to international markets. This facility will bring strength to our operations, especially in such challenging times of Covid-19."
With this long-term financing, the DFI supports a major player in the agricultural supply chain of numerous African and Asian countries particularly affected in this corona pandemic. This contributes to food security for populations in need.