JUHAYNA FOOD INDUSTRIES S.A.E. Juhayna Secures Three Medium-Term Facilities Totaling EGP 480 mn to Streamline Finances
The facilities will provide Egypt's leading dairy, yoghurt and juice manufacturer with additional financing capacity to support its new Egyfood plant, the expansion of its distribution network, as well as an enhanced base of working capital
29th September 2015
The facilities include an EGP 250 million loan from the Commercial International Bank (CIB); EGP 150 million from the Egyptian Gulf Bank (EGB); and EGP 80 million in the form of a commercial leasing agreement with Arab African International Leasing (AAIL).
Juhayna's distribution and commercial arm, Tiba for Trade and Distribution, continues to expand its distribution network at an accelerated pace. The Juhayna subsidiary will utilise the EGP 150 million facility from EGB to streamline its funding needs for the expansion of its operations, which to date include some 28 sales and logistical distribution centres across Egypt's governorates and over 1,000 distribution vehicles. Tiba will also call on an EGP 80 million leasing facility from AAIL through a seven-year sale-and-lease-back arrangement on three of its logistics centres.
Meanwhile, Egyfood's recently operational Six of October yoghurt plant will call on the EGP 250 million CIB facility primarily to enhance its working capital position.
'Securing the necessary financing from three leading financial institutions underscores the market's confidence in Juhayna's outstanding fundamentals and in our growth plans. The larger part of the facilities was earmarked for drawdown during the third quarter of 2015, with EGP 150 million to be utilized in the fourth quarter,' said Juhayna Financial Director Mr. Sameh El Hodaiby.
'These funds give us a strong, liquid balance sheet to support our growth and expansion in key segments across Egypt,' El Hodaiby added.
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ABOUT JUHAYNA FOOD INDUSTRIES
Juhayna Food Industries a leading producer and distributor of milk, juice and yogurt products. The company was established in 1983 by Safwan Thabet along with a number of other founders with paid-in capital of EGP 1.3 million. Production began in 1987 with a total production capacity of 35 tons per day and total sales of EGP 2.4 million. The company has since grown to become the most popular household name in the sector across Egypt.
Today, Juhayna owns seven plants in addition to 28 sales and distribution centers. The company presently has paid-in capital of EGP 706 million and a work force of more than 4,000 employees. For more information, please visit Juhayna.com.
FORWARD-LOOKING STATEMENTS
Statements contained in this Business Review that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Juhayna Food Industries. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes 'targets' or 'forward-looking statements,' which can be identified by the use of forward-looking terminology such as 'may,' 'will,' 'seek,' 'should,' 'expect,' 'anticipate,' 'project,' 'estimate,' 'intend,' 'continue' or 'believe' or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Juhayna Food Industries may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Juhayna Food Industries is subject to risks and uncertainties.
CONTACTS
Fadwa Hossam Issa
Head of Investor Relations Fadwa.issa@juhayna.com
Khaled Yasser Daader Assistant Team Leader Khaled.daader@juhayna.com
Tel: +20 (0)2 3828 6417
Fax: +20 (0)2 3828 6567
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