Funding Chicken Republic Development in Nigeria

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African News advised that Food Concepts (“FC” or the “Company”) is a leading Quick Service Restaurants (QSR) and bakery operator based in Nigeria. “Chicken Republic” with 60 outlets in Nigeria, 9 of which are franchised, and three in Accra, Ghana. FC also operates 10 bakeries, branded as “Butterfield”. The IFC investment would support capital expenditures and working capital over a 4 year period to develop approximately 40 additional QSR outlets; expand bakery capacity by approximately 100%, and make a further investment into poultry backward integration in Nigeria (the “Project”).

Food Concepts was founded in 1999 by Mr. Deji Akinyanju, and commenced operations in 2001. It is a public company (though not listed on the Nigerian Stock Exchange) whose shareholders are Food Concepts International Limited or FCIL (63.7%), Employee Share Trust (1.9%) and other shareholders (34.4%). In turn, FCIL’s main shareholders include Chief Dele Fajemirokun, Mr. Deji Akinyanju, Akinyanju Family, Mr. Sola Alabi, Mr. Jerry Chukwueke and Asaris Limited.

Total project cost is estimated to be $86 million consisted of: (i) QSR expansion; (ii) Bakery expansion; (iii) Setting up a poultry farm; and (iv) working capital.

Hindmarsh LLC t/as Hindmarsh Finance proposed an IFC investment made up of an A Loan from IFC’s own account of up to $ 10 million, and Equity of up to $ 10 million, to be used for QSR and bakery expansion.

Chicken Republic outlets are located in following cities: Lagos, Abuja, Port Harcourt, Zaira, Kaduna, Owerri, Ibadan, Warri, Benin, Calabar, Enugu and Ilorin.

Butterfield bakeries are located in following cities: Lagos, Abuja, Port Harcourt, Abeokuta, Ilorin, Benin, Kaduna and Ibadan.

Free Range Farms Limited (FRF) is being established on a 250 hectares of land in the Abeokuta Agricultural Zone (AAZ), Ogun State. All sites have good access to major transport routes.

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