Bioparques

completed

Bioparques de Occidente, S.A. de C.V. (Bioparques or the company), a greenhouse tomato producer is undertaking a $25 million investment program to add 85 hectares of hydroponic greenhouses and a packing facility to its existing greenhouses in the state of Jalisco, Mexico. Bioparques will increase its production of “beefsteak tomatoes” to supply the growing US and Mexican markets, providing consistent high quality year-round and pesticide-free tomatoes. Bioparques benefits from Mexico’s favorable climate, low labor costs and proximity to the US market.The project is implemented in two phases. The first phase, in which the company will expand from 45 to 80 hectares is near completion at a cost of $10 million. The second phase, from 80 to 130 hectares, will be completed by 2008 at a cost of $15 million. The investment includes acquisition of additional land, greenhouses and irrigation equipment, infrastructure and working capital. The company requested IFC financing of up to $12 million, in the form of an A loan of up to $7 million, and a C income-participating loan of up to $5 million. The balance will be financed from shareholders’ equity and cash generation.