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ETC Agro Processing India Private Limited (“ETC Agro” or the “Company”) is amongst the largest pulse processors in the world and traders of pulses in India.  ETC Agro is a 100% subsidiary of ETC Group, one of IFC's key clients in Africa.  ETC Group (“ETG” or “the Group”) is a vertically integrated agricultural supply chain group involved in procurement, warehousing, processing and/or manufacturing, transportation and distribution of finished goods, globally. The Group and its subsidiaries are active in almost 26 African countries as well as in India, China and South East Asia and has additional trading, merchandising desks in Europe, the Americas and the Middle East.  Group’s diversified portfolio includes over 50 different commodities of which 10-12 are prime commodities which include cashews, oilseeds, sugar, coffee, pulses, wheat, fertilizer, rice, maize and sesame seeds. In India, ETC Agro handles several pulses such as: pigeon peas, yellow peas, chick peas, lentils, green gram and black gram.  ETC Agro procures pulses for processing by either sourcing it within India (through commissioning agents, local traders and government tenders) or importing through ETG’s integrated supply chain globally as permitted by prevailing import regulations in India.  As on today, the company has a total pulses processing capacity of 500,000 metric ton per annum (MTPA) spread across 3 facilities in Gujarat, Maharashtra and West Bengal.  The proposed financing in the Company is a repeat investment of INR 1,600 million (~US$22.5 mn) IFC A loan of 6.25-year tenor.  The purpose of the loan is to finance its long-term incremental working capital needs (“Project”).  The funds raised through IFC A loan will be used to finance the growing working capital needs as the Company ramps up its new processing plant (financed earlier by IFC in 2017) and adapts it strategy to changing industry dynamics.  The proposed project complements ETC Agro’s capex investment from 2017.Under the project, company plans to improve the operational capacity of its existing plants from current 50% level to 85% levels by fiscal year 2022.  Company also wants to augment its pulse processing capacity by annual leasing of third party operated pulse processing plants (3P mills) and has set a target of 40,000-60,000 MTPA in FY20.  Eventually, company targets augmenting approximately 140,000 MTPA processing capacity through annual leasing of 3P mills by fiscal year 2022.  To improve its country-wide presence and pulse processing capacity which is currently limited to western and eastern states of India, company has identified five (5) clusters in India where 3P mills will be identified based on a screening criterion to augment its processing capacity.  Company has already worked with five (5) 3P mills in the fiscal year FY19 and is targeting to lease as many as twelve to fifteen (12-15) 3P mills to achieve its augmented capacity in coming years.IFC has had a long history of investment with ETG. See for example, “Export Trading Group”, Project no. 28472, disclosed in October 2009, at: https://disclosures.ifc.org/#/projectDetail/ESRS/28472 and “ETC Group”, Project no. 32863, disclosed in February 2013, at: https://disclosures.ifc.org/#/projectDetail/ESRS/32863.  With ETC Agro, IFC financed an A loan in May 2017 to finance the setup of its greenfield pulses processing plant at Kolkata in India (Refer to IFC Project # 39370 disclosed at: https://disclosures.ifc.org/#/projectDetail/ESRS/39370).  Environmental and Social (E&S) performance of the ETC Agro project in India has been satisfactory based on IFC’s monitoring to date.