Bauducco Growth

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 Pandurata Alimentos Ltda ("Bauducco" or "the Company") is a leading baked products company in Brazil, that has three manufacturing plants in Guarulhos (Bonsucesso, Argentina y and Endres), Sao Paulo; one manufacturing plant in Extrema (111 Km from Sao Paulo), Minas Gerais; and one in Rio Largo, Alagoas. IFC is a long-term partner of Bauducco, having committed three investments since 2007: #25765 disclosed in April 2007 (https://disclosures.ifc.org/#/projectDetail/ESRS/25765), project # 27783 disclosed in May 2009 (https://disclosures.ifc.org/#/projectDetail/ESRS/27783, #37708 disclosed in February 2016 (https://disclosures.ifc.org/#/projectDetail/ESRS/37708).  Bauducco’s current environmental and social risk rating is satisfactory. Bauducco has a wide range portfolio of products that includes: sliced bread, toasts, wafers, cookies, panettones, among others. All facilities are in industrial areas, except for three facilities located in Guarulhos, which is in an urban setting. As noted, this will be the fourth transaction; this investment involves a US$70 million financing package to Bauducco, consisting of a US$25 million A Loan, US$12.5 million Trust Loan and US$15 million B Loan to be mobilized. This will fund Bauducco’s 2018-2019 investment programs that is focused on: (i) expansion of its plant in Extrema, (ii) civil construction to expand its Guarulhos plant; and (iii) associated working capital needs. All expansions are being done adjacent to current facilities, taking advantage of available space. As a result of the expansion in both Extrema and Bonsucesso, 410 and 300 new job positions will be created respectively