Deal Summary
Kineden Commodities SA, an Ivorian cocoa trader founded in 2014 specializing in sustainable sourcing and export, has secured a $65.7 million syndicated loan led by Ecobank International and Morocco’s Banque Chaabi du Maroc. The funding aims to optimise costs, diversify into agricultural processing, secure the supply chain, and expand into new commodities like cashew nuts. With annual sales of 50,000 tonnes of beans, Kineden is a local player in the ‘certified beans niche’ and sustainability.
Terms
- Lead Investors: Ecobank International, Banque Chaabi du Maroc (BCDM)
- Deal Type: Syndicated Loan
- Target Company: Kineden Commodities
- Investment Amount: $65.7m
- Target Revenue: €100m in 2022
Deal Rationale
Starting December 2024, the EU Deforestation Regulation will require proof that imported cocoa beans to the bloc did not contribute to deforestation. This will necessitate GPS coordinates for farms where the cocoa was grown and uploading them into an EU database. Noncompliance penalties include fines, confiscation, or a temporary EU trading ban. The rules are intended to help fight climate change and biodiversity loss. This regulation increases the need for financing in sustainable cocoa sourcing and tracing. Despite being the world's largest cocoa producer, Ivory Coast's supply chain is underfinanced and low-tech, putting the West African market for cocoa at a pivotal point.
Chocolate multinationals (Mondelez, Mars, Nestlé, Hershey's, Ferrero and Lindt & Sprüngli) and distributors (Lidl, Carrefour, Aldi, Metro and Leclerc) wield significant market influence. While they have bolstered sustainability policies, they are shifting traceability responsibilities to upstream producers—local producers and cooperatives—with limited resources. Kineden distinguishes itself by investing in sustainability, certification, and traceability, securing its fifth financing since 2021 (€4.5 million). This positions the company to forge deeper relationships with global players like ECOM, Touton, Sucden,
About the Fund Managers
Ecobank International is the international subsidiary of the Togo-based Ecobank Group. With a presence in 36 African countries, Ecobank focuses on financing small and medium-sized enterprises (SMEs) across major sectors. The bank aims to direct at least 75% of its loan facility to SMEs in underbanked countries, addressing the significant financing gap that exists in these markets. Ecobank looks for SMEs with solid growth potential, established business models, and the ability to contribute to local economies.
Banque Chaabi du Maroc (BCDM) is a prominent Moroccan bank known for its extensive range of financial services aimed at individuals, businesses, and institutions. Established as part of the ChaabiGroup, BCDM plays a significant role in Morocco's banking sector. BCDM provides financing solutions, including agriculture, industry, and services. The bank aims to support local enterprises by offering tailored financial products that meet their needs.
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