Cofco Noble II

completed

The proposed IFC investment is up to US$36 million equity for an indirect minority shareholding in Noble Agri through a subsidiary jointly owned by COFCO and an international consortium of investors (IC). Specifically, IFC will participate its pro-rata share to buy out the 49% minority stake of Noble Group in Noble Agri, together with COFCO Corporation (“COFCO”), the leading agribusiness group in China, and IC, including IFC, HOPU fund and other investors. This is a follow-on investment (#34738) in which COFCO and the IC bought a 51% shareholding in Noble Agri through a subsidiary and created a joint venture trading platform to capitalize on potential synergies across the supply chain with COFCO. IFC’s investment transferred into an indirect ownership of 4.5% in noble Agri. Noble Agri, recently spun out of Noble Group, is a global agricultural supply chain management company, involved in the origination, primary production (sugar), processing and distribution of grain and oilseeds, sugar and ethanol, and other soft commodities (coffee and cotton). Noble Agri owned assets encompass 39 industrial facilities, including 18 fully owned processing facilities and port terminals (China, Brazil, Ukraine, Argentina, India and South Africa) and 21 fully owned storage facilities (warehouses and elevators located in China, Brazil, Ukraine, United States, Argentina, Paraguay and Uruguay). Main operational assets include, among others, a soy crushing and biodiesel facility in Argentina; four oil seed (soy and palm oil) crushing facilities and one seed oil refinery in China; four sugar cane crushing and ethanol production facilities and 143,000 ha of sugar cane plantations in Brazil; three grain port facilities in Argentina, Paraguay, and Uruguay and a grain and sugar port facility in Brazil; and grain silos in Argentina (4), Brazil (4), Paraguay (5), Ukraine (3), and China (1). Noble Agri’ sunflower seed crushing facility in Ukraine and the soy crushing facility in South Africa have entered into operation in 2015. A soy and palm oil refinery facility in India and a soy and biodiesel plant in Brazil have yet to be commissioned. Finally, Noble Agri has a farming operation in South Africa with soybeans, sunflower and maize farmed on 26,000 ha. The main operational footprint is located in Latin America. In 2014, Noble Agri carried 36 million tonnes of products globally. Noble Group’s palm oil plantations and a palm oil crushing facility in Indonesia (Papua Province) are not included in this acquisition.This is the 2nd IFC indirect investment in Noble Agri following an initial equity investment (#34738) which was disbursed on October 7, 2014. Noble Agri EHS performance against IFC’s Performance Standards requirements and implementation of its E&S Action Plan (ESAP) during the previous investment has been consistently improving.