People
Valency currently procures indirectly from farmers through traders/agents and cooperatives. Following this transaction, a 30 per cent increase in direct procurement from farmers is expected to boost their revenues.
| Company | PIDG |
| Sector | Agri-infrastructure |
| Country | Côte d’Ivoire |
| Total Project Cost | USD 42.5 million |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Côte d’Ivoire is the world’s largest cashew producer but currently processes only circa 30 per cent of its output in-market due to limited capacity, inadequate storage and financing constraints. Processing cashews adds value; by enabling an increase in local processing, this deal will support government targets to process 50 per cent of its cashews by 2030, promoting higher economic returns for the market.
PIDG, through GuarantCo, provided a 100 per cent, eight-year guarantee to a bond issuance platform for a EUR 37 million loan to Valency International Pte Ltd, an agriculture-supporting infrastructure company. The platform is mobilising capital from M&G Investments and is arranged by Symbiotics.
The transaction will finance the construction of new warehousing, create a working capital facility to support cashew operations and refinance existing DFI debt utilised towards the construction of a cashew processing plant with private debt.
Valency currently procures indirectly from farmers through traders/agents and cooperatives. Following this transaction, a 30 per cent increase in direct procurement from farmers is expected to boost their revenues.
There is an expected annual increase in export revenue of USD 360 million and procurement from the local supply chain of USD 224 million over the lifetime of the guarantee.
This transaction will mobilise USD 54.5 million of private sector investment into an FCAS country.
There is a clear opportunity for the investment to support the climate resilience of farmers and cooperatives and the wider cashew supply chain.
