Egyptian Indian Polyester Company - Sokhna

completed

South Asia Petrochem Limited (“SAPL” or “the Company”) which started operations in 2003 is the second largest producer of food grade polyethylene terephthalate (PET) in India with annual sales of about $225 million. The PET plant is located in Haldia (West Bengal, India) and has a current capacity of 200,000 tons per annum (“tpa”). SAPL is a part of Kolkata (Calcutta) based Dhunseri Group (“Dhunseri” or “the Group”), promoted by Mr. C.K. Dhanuka and Family (the “Sponsors”), which is one of the largest tea producers in eastern India. In the year 2009-10, appx. 40% of the total sales of SAPL are accounted for by exports to over 29 countries of which 78% comes from exports to the U.S. and European Union countries. SAPL proposes to build a greenfield PET plant in Egypt with capacity of 420,000 tpa at a cost of about $160 million (“Project”). IFC has been requested to provide a $35 million A Loan for IFC’s own account and up to $60 million in syndicated B Loan/or Parallel Loans.. The E&S performance for the IFC’s investment in SAPL’s Indian operations meets both local regulatory requirements and IFC’s Performance Standards. SAPL will use the EHS management system and procedures from its Indian operation as templates for the proposed investment in Egypt.