Cash collateral for establishing semi-oil refinery at Admas Union

Through Agriterra, a social impact investor, stemming from a main Dutch Farmer Organization (LTO), has shown appetite to provide cash collateral of 250.000 Euro in order to leverage the loan for Admas Farmers Cooperative Union for the purpose of setting up an semi-oil refinery plant. This initiative is regarded as pilot, aiming to lead to better investment opportunities and stimulate financial access for cooperatives. During the course of the pilot, other investors or ways to expand/up-grade this initiative will be inquired. The impact investor is aware of the complex financial situation in Ethiopia, which makes it difficult to withdraw investment capital out of the country. If there is an option to repatriate the funds after five years, this is welcomed, but is not a precondition. If repatriating the fund is not possible, another options will be outlined on how the remaining funds could be allocated locally. The social impact investor and NIB have found each other around the ambition to finance ADMAS' business initiative to establish a semi-oil refinery plant.