The leading East African dairy processor will acquire a packing facility modernizing the dairy value chain.

July 15th, 2024 Washington D.C. USA // Delphos secures USD 35 Million senior debt financing as exclusive advisor to Pearl Dairy Farms Limited (‘Pearl Dairy’), an East African dairy processor. The financing from International Finance Corporation (‘IFC’) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (‘FMO’) for Pearl Dairy Farms will upgrade and increase the capacity of its powdered milk plant in Uganda. The financing will also support the acquisition of a packing facility in Kenya.

Pearl Dairy Farms robust Dairy Development Program, implemented with IFC’s support, will benefit over 15,000 local farmers, providing training on best practices and access to data helping farmers boost their productivity and profitability, as well as scale production. The financing will also help to bolster food security in the region by increasing access to dairy products and fortifying the dairy supply chain to better withstand macroeconomic shocks.

Pearl Dairy’s CEO Amit Sagar says: “Securing this facility is an important milestone for Pearl and is a testament to our continued commitment to driving growth and excellence in the dairy sector. With IFC and FMO’s support, we are poised to scale our impact even further, empowering more smallholder farmers, enhancing food security, and fostering sustainable growth,”

“Pearl Dairy is a perfect example of an impact story where investment in modernizing the dairy value chain creates significant economic returns for the community and the country as a whole. IFC and FMO’s financing will enable Pearl Dairy to expand across the continent. We believe that those that achieve inclusive growth can make significant economic returns for their community. “Said Delphos Chairman and CEO, Bart Turtelboom.

The transaction is expected to have significant impact in both Kenya and Uganda, helping to increase smallholder farmers’ access to the raw milk market in both countries. In the past 37 years, Delphos has raised $4.7+bn in financing for transactions across the African continent.  It has continued to contribute to SDG Goal 2, alleviating hunger in emerging economies, by actively participating in agricultural production growth.  The Ugandan agricultural sector continues to be the most important sector; it employs approximately 72% of the population and contributes about 24.1% to the GDP. Uganda’s dairy sector is now valued at US$3.8 billion while the export portion brings in US$106.2m per year. Milk and dairy products are crucial allies against hunger and food insecurity.

About Pearl Dairy Farms Limited:
Founded in 2009, Pearl Dairy Farms Limited has become a leading producer and distributor of dairy products under the Lato Milk brand in East Africa. The Company serves both the B2C and B2B markets and boasts top-three market positions in Uganda and Kenya. Pearl Dairy Farms produce and sell UHT milk, milk powder, yogurt, flavored milk, butter, and other products across East Africa and globally. The Company sources its raw milk from its growing list of 28 milk collection centers in Uganda, as well as several cooperatives and aggregators in Uganda and Kenya. The Company has a highly impactful business model, sourcing its milk from over 10,000 smallholder farmers in Uganda and 5,000 farmers in Kenya and fostering economic growth in local communities.

About Delphos: delphos.co

Delphos is the definitive source for arranging innovative financial solutions for development companies and projects.  We specialize in raising long-term, competitively priced capital for corporates, fund managers, developers, SMEs, sovereigns, and entrepreneurs around the world. Since 1987, we have arranged more than $20 billion in development finance to support the efforts of over 1,200 companies. We tap into the resources of more than 350 government agencies and multilateral organizations worldwide to help clients realize their international business goals and have sustainable impact. In addition to our capital raising efforts, Delphos provides market-leading transaction advisory and investment/risk management consulting services to government and private sector clients across multiple industries. We are approved advisors to AfDB, DFC, IDB Invest, IFC, USAID, US Ex-Im Bank, USTDA, WBG, leading private equity firms, infrastructure developers and strategic investors, and foreign governments and utilities.

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