Exportadora Subsole S.A.

repaid

The Subsole expansion project calls for investments in the following areas: plantings of different varieties of table grape in several regions of Chile, for a total of 560 hectares; avocado plantations (11 hectares); stone-fruit plantations (37 hectares); the expansion of one cold storage plant and the construction of two cold storage plants for growers partnering with Subsole; the construction of eight air-conditioned packing centers; the purchase of machinery to handle round fruit (oranges, clementines, avocado, kiwi); and good agricultural practice programs. The Project started in mid-2001, when Subsole obtained short-term funds to finance plantings, primarily of table grapes, for suppliers, some of which partner with Subsole while others are just suppliers of the company. Subsole decided to finance these plantings to ensure the supply of certain minimum volumes of fruit for export. The Project will enable it to increase its export volumes to 5,400,000 fruit crates in 2006/2005, up from 2,894,000 crates in 2001/2000. The construction of the cold storage facilities and the air-conditioned packing centers will enable Subsole not only to reduce the cold-storage service charges it currently pays to third parties, but also to better control the quality and marketing timing of fruit. The Project cost is US$18.4 million, with the IIC granting a loan of up to US$7 million, to be used to provide long-term financing to growers who supply Subsole with fruit.