Project:Creating a blended finance solution to originate investment, finance and construct a cold storage facility at the Port of Tanger Med.
Key Figures:Generated project investment volume of USD 11 million.
Background:Through a USAID-backed market mapping program, LixCap isolated an opportunity to develop a cold storage facility at the Port of Tanger Med. The refrigerated warehouse presented an investment opportunity and a means to enable local agribusinesses to export their goods to Europe.
Methods:The LixCap team developed a blended finance solution in order to transform a previous market study for USAID and DAI, Inc. into a bankable deal. We structured an investment package that would catalyze the construction and maintenance of a cold storage facility. We developed a strategic partnership with Friopuerto, a Spanish-based cold storage firm, to bring external capital. LixCap also brought its internal capital and received capital support from a local family office in Morocco. A portable credit guarantee from USAID’s Development Credit Authority supported the investment. This was followed up with the sourcing of investment partners in Morocco, Spain and the United States, ultimately securing USD 11 million.
Results:LixCap and its team in Morocco provided financial structuring and project management services, guiding the process from the first concrete poured to the final installation of refrigerating systems. A customer base was generated in order to ensure success beyond the construction phase. Today, Friopuerto Tanger Med is North Africa’s most advanced cold storage facility and will generate profitable returns as well as positive impacts for local agricultural producers and traders.