Egyptian tycoon Safwan Thabet’s Juhayna secures $9.5-million credit facility

Feyisayo Ajayi -

Key Points:

  • Egyptian food giant Juhayna secures $9.5-million loan with lower rates tied to hitting sustainability goals like reducing emissions.
  • Loan offers lower interest rates tied to achieving environmental goals, including reducing carbon emissions by 2025.
  • Juhayna targets regional leadership with focus on sustainable practices, aiming for 42% carbon reduction by 2030.

Juhayna Food Industries, a leading Cairo-based dairy, juice, and cooking product manufacturer controlled by Egyptian businessman Safwan Thabet and his family, has secured a $9.5-million credit facility from HSBC Bank Egypt (HSBC). The agreement, announced in a bourse filing, aims to enhance the company’s working capital and advance its sustainability efforts.

According to a bourse filing on June 9, 2024, this renewed package introduces benefits tied to achieving specific sustainability milestones, including potential reductions in interest rates. This deal renews a previous working capital financing arrangement signed in November 2023.

Incentivizing environmental responsibility

The credit facility offers lower interest rates, incentivizing Juhayna to meet environmental targets, including an 18.7-percent cut in direct and indirect emissions by 2025. This move reflects a growing trend in the food and beverage industry towards sustainability-linked loans.

Seif Thabet, CEO and Vice Chairman of Juhayna, expressed his satisfaction with the partnership. “We realize the current and future impact of climate change and its direct influence on the global ecosystem,” Thabet said. He emphasized the company’s commitment to energy and water conservation, resource diversification, and capacity-building initiatives related to environmental practices.

Juhayna rises as regional leader, Thabet family steers growth

Egyptian food and beverage giant Juhayna, founded nearly four decades ago by Safwan Thabet, has become a top player in the region’s consumer goods sector. The company, majority-owned (50.07 percent) by Thabet through Pharon Investments Limited, oversees a vertically integrated operation spanning production, processing, and packaging of dairy, juice, and cooking products.

Juhayna is charting a sustainable course, targeting a 42-percent reduction in carbon emissions by 2030 and achieving 100-percent recyclable packaging. The company prioritizes employee well-being, with a credit facility agreement stipulating a 20-percent increase in health and safety training hours compared to 2022 levels.

Under Thabet family leadership, Juhayna delivered stellar financial results in 2023. Revenue surged 42 percent year-on-year to EGP16.12 billion ($340 million), with profit after tax rising 60 percent to EGP1.21 billion ($25.5 million).

Buoyed by strong financials and a commitment to sustainability, Juhayna is poised for continued success in the international food and beverage market. This strategic direction positions the company to capitalize on evolving trends and consumer preferences.