Al Safi Danone Iraq LLC

completed

Al Safi Danone for Dairy Production and Distribution LLC (the “Company” or “ASDI”) is an establishment that was formed in 2012 for the production, marketing and sales of processed dairy products in Iraq. In 2014, the Company constructed a new dairy processing and bottling plant near Erbil, located within the semi-autonomous Kurdistan Regional Government (KRG) in northern Iraq. The shareholders have already completed the full equity contribution amount of US$36 million into ASDI that was used to construct the facility and to install two of the three envisaged production lines with circa 43k tpa capacity to date. The Company started commercial production April 20, 2014. IFC’s loan proceeds will be used to purchase and install the 3rd production line to produce Big Pot Yogurts which will be tentatively commissioned in September 2014, and to pay for the remaining ancillary Capex items.The Project will be funded by a combination of the Sponsors’ equity and IFC long-term financing. The main purpose of the Project is to partially replace the importation of processed dairy products from the Kingdom of Saudi Arabia (“KSA”) to Iraq through the Company’s local production. The proposed IFC investment is an US$18 million A Loan that will be structured as a Sharia-compliant sale-and-lease-back product, “Ijara”.