IFC to back Equatorial Coca Cola Bottling Company’s expansion plan with US$71m financing

MOROCCO – Equatorial Coca-Cola Bottling Company (EECBC), bottling company for The Coca Cola Company operating in West and North Africa, is eyeing a €70 million (US$71m) financing package from IFC.

The proposed investment, comprising of a senior loan of up to €53 million (US$53m) and a €17 million (US$17.25m) facility from IFC as implementing entity for the Canada IFC Blended Finance Program (BCFP), is aimed to support the company’s new investments and working capital requirements.

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According to the financial institution, ECCBC will channel part of the funds to upgrade a production line at its Fruital plant in Algeria with a new CSD production line with a capacity of 45,000 bottles per hour.

The new production line will also have a 25% reduction in electricity consumption to produce replaced volume and a reduction in the utilization of raw materials.

In addition, the beverage maker seeks to set up a new packaged drinking water line at its COBOMI plant in Morocco.

This will replace an existing line with a capacity of 20,000 bph and enable a reduction in plastic utilization.

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The proposed investment will also support EECBC’s sustainability initiatives as it seeks to upgrade its coolers in Ghana, Algeria and other West African Countries with the purchase of 25,000, which will be 25% more energy efficient.

Further to that, its plants in Ghana and Morocco are set to commence utilization of green energy as the company plans installation of solar panels in Morocco and establishment of both a solar plant and off-grid solar coolers in Ghana.

Headquartered in Morocco, ECCBC was founded in 1997 and has been expanding over the years through acquisitions.

Before its incorporation, the company had been distributing TCCC products in West Africa since 1951, first in Equatorial Guinea and then in Guinea Conakry, Guinea Bissau, Mauritania, Cape Verde and the Gambia.

It is now distributing TCCC products in 13 African countries, including Morocco, Algeria, Ghana, Guinea Conakry, Equatorial Guinea, Cape Verde, Liberia, Gambia, Mauritania, Sierra Leone, South Sudan, Bissau Guinea and Sao Tome and Principe.

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ECCBC produces, commercializes, and distributes five categories of beverages: carbonated soft drinks (CSD), juices, water, energy drinks and malt.

It is a vertically integrated company from own production and warehousing assets, distribution managed by ECCBC and third-party partners, and commercialization through 3 channels – local vendors, supermarkets, and restaurants.

The company reaches 100+ million consumers through 200,000+ points of sales. It currently has 27 production lines and seven bottling plants – three in Morocco and one each in Algeria, Ghana, Guinea Conakry, and Cape Verde at the time of this appraisal.

The investment package will include a tranche for a Green Loan, subject to the review and recommended approval of an external reviewer.                                                

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