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Egypt: IFC supports Egyptian bottling company
Posted: 27-06-2006 , 14:25 GMT
SonutThe International Finance Corporation, the private sector arm of the World Bank Group, will provide financing of $14 million to support the expansion of Société Nationale d’Industries Nutritives S.A.E., or Sonut, an Egyptian bottling company that produces Schweppes carbonated soft drinks and natural water.
IFC’s loan will support Sonut’s two-year investment program of $28 million. The program plans to launch the use of 330ml-sized returnable glass bottles, which are becoming the industry standard in Egypt and globally. It will also increase the company’s PET-bottling capacity for natural bottled water and provide working capital to help Sonut achieve its growth targets.
Oscar Chemerinski, Manager of IFC’s Agribusiness Department, commented, “IFC is pleased to support the expansion of Sonut, an innovative local producer and distributor of soft drinks and bottled water. This investment will help Sonut solidify its position as one of Egypt’s leading carbonated drink bottling companies.”
Michael Essex, IFC’s Regional Director for the Middle East and North Africa, added, “IFC’s investment in Sonut is aligned with our strategy to support Egypt’s expanding agribusiness sector, which includes food and beverages.”
Sonut is committed to environmental and social sustainability. It has implemented quality management systems and obtained several international certifications, such as the International Standard Organization 9001 and Hazard Analysis Critical Control Point system. Sonut operates under a bottling franchise agreement with Schweppes Holding Limited of Atlantic Industries, a subsidiary of The Coca-Cola Company Export Corporation. The company aims to work with IFC’s Private Enterprise Partnership in the region and become IFC’s first private sector client in Egypt to implement a corporate governance enhancement program.
Sami Saad, Chairman of Société Nationale d’Investissement S.A.E., the holding company for Sonut, commented, “The Sonut investment is important for the group’s long-term cooperation with IFC as a possible financing partner for other operations.”
“IFC’s experience in developing the global agribusiness industry will help us achieve its ambitious targets and expand our food, beverage, and confectionery product lines,” added Bassel Saad, Sonut’s Chairman.
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