Ethiopia’s leading producer of day-old-chicks and poultry feed, EthioChicken Group is set to acquire a US$10 million loan from IFC to enable it implement its 5-year program.

Under the company’s growth plan, it seeks to construct two new breeding farms with a capacity of 60K bird each and one new hatchery facility, expected to cost US$16.2 million. The two new breeding farms will be built in SNNPR region and Amhara region, while the new hatchery will be built in SNNPR region. In addition, the group will utilize the financing to boost its working capital for purchase of parent stock birds; and refinance an existing long-term loan.

EthioChicken Group consists of three operating companies in Ethiopia i.e., AGP Poultry PLC, Mekelle Farms PLC and Andasa Poultry PLC; and two holding companies in Mauritius i.e., Agflow Ventures and Agflow Poultry.

For IFC loan, the three operating companies will be co-borrowers and the two holding companies will be guarantors.

Other than the financing, IFC will undertake standard setting assisting the group to develop Environmental Health and Safety (EHS), and social practices in line with international standards.

To read the full article follow this link IFC seeks to issue US$10m financing to Ethiopia’s leading poultry company EthioChicken Group