Juhayna Food Industries, a renowned Cairo-based dairy, juice, and cooking product producer owned by Egyptian billionaire Safwan Thabet and his family, has received a $9.5 million credit facility from HSBC Bank Egypt (HSBC). The arrangement, which was disclosed in a market filing, intends to increase the company’s working capital and boost its sustainability efforts.
According to a bourse filing dated June 9, 2024, this updated package includes rewards connected to meeting particular sustainability objectives, such as future interest rate reductions. This transaction renews a previous working capital borrowing agreement executed in November 2023.
The loan facility provides lower interest rates, rewarding Juhayna to reach environmental standards, including an 18.7 percent reduction in direct and indirect emissions by 2025. This decision indicates an increasing trend in the food and beverage industry for sustainability-linked financing.
Seif Thabet, CEO and Vice Chairman of Juhayna, expressed delight with the collaboration. “We realize the current and future impact of climate change and its direct influence on the global ecosystem,” Thabet stated. He underscored the company’s dedication to energy and water conservation, resource diversification, and environmental capacity building programs.
Safwan Thabet created Egyptian food and beverage company Juhayna about four decades ago, and it has since become a dominant force in the region’s consumer products market. Thabet owns the majority (50.07 percent) of the company through Pharon Investments Limited. It controls a vertically integrated enterprise that produces, processes, and packages dairy, juice, and cookery products.
Juhayna is on a sustainable path, aiming for a 42% reduction in carbon emissions by 2030 and 100 percent recyclable packaging. The corporation values employee well-being, and a credit facility agreement requires a 20% increase in health and safety training hours over 2022 levels.
Juhayna achieved outstanding financial performance in 2023 under the leadership of the Thabet family. Revenue increased 42% year on year to EGP16.12 billion ($340 million), with profit after tax climbing 60% to EGP1.21 billion ($25.5 million).
Juhayna’s strong financials and commitment to sustainability position the company for continued success in the international food and beverage market. This strategic orientation allows the organization to capitalize on changing trends and consumer preferences.