Chenguang Bio

completed

 The objective of the proposed investment of up to US$40 million for Chenggang Biotech Group Co., Ltd. (Chenguang” or the “Company”) is to support the company’s permanent working capital needs to increase production. Chenguang is a leading producer of natural, plant-based food extracts and additives in China. The Company currently sources raw materials from Xinjiang Province, China and Andhra Pradesh, India, and is looking to expand its sourcing footprint to Africa, which is the subject of an IFC advisory engagement. Chenguang is headquartered in Hebei Province, and is listed on the Shenzhen Stock Exchange with a market capitalization of US$700 million. The Company uses plant-based inputs including paprika, capsicum, marigold to extract flavoring and coloring ingredients for the food industry as well as active substances for pharmaceutical use. Chenguang’s procurement of plant-based inputs provides an invaluable market access for farmers in its supply chain. The company has historically relied on short-term loans for its financing needs; and is seeking a long-term loan from IFC to help strengthen its balance sheet and support growth in China as well as in India.