The funds will allow Nakheel Palestine, the leading producer of Palestinian “Medjool” dates, to buy a date farm and strengthen its agricultural and industrial capacities.
Nakheel Palestine is a Palestinian company based in Jericho in Westbank. Nakheel is the leading Palestinian producer of Medjool dates on the domestic as well as international market since the company is exporting more than 60% of its products (in volume).
Proparco’s USD 10 M loan will enable to finance part of the acquisition of an existing farm, enabling to boost Nakheel Palestine's volumes and profitability, thanks to significant economies of scale. The remaining part of the financing will be used to develop the farming and industrial infrastructures of the client.
Proparco’s financing to Nakheel will enable the support of the economic and social development of Palestine where unemployment and poverty are increasing the security and political instability risks. Supporting Nakheel will have a direct positive impact on the local economy through a company which together with its main shareholder Padico, are known for their good governance, high Environmental and Social standards. In addition, this investment will have a demonstrative effect of Palestine's private sector bankability that is lacking long term financing. A technical assistance program financed by Proparco will support the client to explore new alternative sources of water to optimize the use of this resource that is very scarce in the area.
NAKHEEL PALESTINE - A fruitful tomorrow
The loan represents Proparco’s first project in support of the Palestinian private sector, making it the first development finance institution to assist Palestine’s agricultural sector.