Alvoar Equity

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The proposed IFC equity investment of up to US$30 million is to support Alvoar Lacteos’s expansion program. Alvoar Lacteos (“Alvoar” or the “Company”, https://alvoar.embare.com.br/) was founded in 2022 as a result of the merger between Betania Lacteos S.A (“Betania”, a leading dairy producer in the Northeast of Brazil, https://www.betanialacteos.com.br/) and Embaré Indústrias Alimentícias S.A. (“Embare”, a dairy producer with strong presence in the Southeast and Midwest of Brazil, https://www.embare.com.br/). The expansion program for 2023 and 2024 will include the installation of new equipment, renovation of existing units, construction of a new unit for cheese production and E&S improvements expenditures. Alvoar operates eight industrial dairy plants and fourteen distribution centers across the states of Ceara, Pernambuco, Sergipe, Bahia, Alagoa and Minas Gerais. All dairy plants were in operation prior to 2018. Alvoar does not own any cattle farms and sources raw milk from 5,500 farmers, including dairy cooperatives and individual farmers, as well as middlemen. Nearly 200 products are manufactured at Alvoar’s industrial plants, including UHT milk, powdered milk, yogurt, cheese, candy and other dairy outputs. All industrial plants and distribution centers are located in urban areas or their periphery.