Agrokasa Expansion

completed

Sociedad Agricola Drokasa S.A. (Agrokasa or the company), a leading grower and exporter of fresh asparagus and table grapes in Peru and a former and current IFC client, is expanding its asparagus growing fields to increase its export revenues. In November 2005, in an open bidding process, the company purchased the assets of Agroguayabito (now called "Las Mercedes"), an existing 2,613 ha agricultural operation 200 km north of Lima, for US$15.4 million. The assets included an asparagus processing and packing warehouse (now called “PESU”), located in the port town of Supe, about 20 km south from Las Mercedes. This project encompasses the purchase of Agroguayabito assets plus an additional $17 million needed to upgrade and refurbish these assets to increase asparagus yields and to produce avocados in both cases expanding the area planted to a total if 1,323 ha. The Company proposes to fund the project 47% via an IFC A Loan and 53% from internal cash generation and equity.