The European Bank for Reconstruction and Development (EBRD) has agreed to offer a loan of $100m to Saudi-based dairy conglomerate Almarai to support investments in Jordan and Egypt.

Through its subsidiaries Beyti and Teeba, Almarai operates in Egypt and Jordan.

In Beyti, Almarai owns a 52% stake, with that remaining 48% owned by PepsiCo.

PepsiCo and Almarai set up a joint venture in 2009 called International Dairy and Juice.

The loan provided by EBRD will be used by Almarai to support Beyti in Egypt to increase dairy and juice production capacity to address the growing demand for its products as well as support its working capital needs.

In Jordan, Almarai will use EBRD loan to support its subsidiary Teeba by strengthening its capital base, as well as offer fresh funding to support Teeba’s permanent working capital needs.

Additionally, a study will be carried out on milk producers, processors and intermediaries in Jordan, focusing on promoting best practices and potential improvements in the raw milk supply chain, funded by the European Union (EU).

EBRD southern and eastern Mediterranean Agribusiness head Tarek El Sherbini said: “Almarai is an important partner of the EBRD and a key player in the food sector in the Middle East and North Africa.

“This transaction marks another step in the expanded cooperation across common economies of operations. We are looking forward to continuing our strategic partnership with Almarai.”

In August 2018, EBRD approved a loan to Egyptian dairy and juice producer International Company for Agricultural Industries Projects (Beyti).