Société SODINCO, S.A.

This summary covers an investment by Fons Mediterrània Capital, F.C.R. de Régimen Simplificado of Spain (FMC) in Société SODINCO, S.A. (Sodinco) in Algeria. The investor has applied for a MIGA guarantee of €3.88 million ($5.25 million equivalent) for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves coverage of Sodinco, an existing portfolio company of FMC, a Spanish private equity fund. Sodinco specializes in the assembly and marketing of Haier brand household appliances in Algeria. Sodinco’s main products are air conditioners and related services, refrigerators, freezers, and washing machines.

Environmental Categorization

The Sodinco project is located in a designated factory, within an industrial estate close to Algiers. The project sponsor will assemble and market household appliances including refrigerators, freezers, air conditioners, and washing machines. These activities present limited adverse social and environmental impacts which are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures.  Potential impacts are related to worker health and safety as well as liquid and solid waste management. This investment is therefore a category B under MIGA’s Policy on Social and Environmental Sustainability. The company has provided MIGA with a social and environmental impact assessment in line with MIGA’s Performance Standards.

Development Impact

MIGA’s proposed support is consistent with MIGA’s efforts to mobilize $1 billion in insurance capacity to support foreign direct investment into the Middle East and North Africa.  This existing investment has also created 230 permanent employment positions and contributed to the economic growth of the community of Baba Ali.