Favorita Fruit Company Ltd.

completed

Favorita owns Rey Banano del Pacífico SA (Reybanpac), one of Ecuador’s leading banana growers and exporters. Reybanpac has been an IFC client since 1993. The Favorita Group activities include trading and shipping bananas (Reybanpac), producing cardboard boxes (Cartonera Andina), plastics (Expoplast), providing fumigation services (Aerovic), and importing fertilizers (Fertisa). As part of its competitiveness strategy Favorita has invested in several certification programs (Rainforest Alliance, EurepGap, SmartWood) and it has become a leader for sustainable agricultural production and good manufacturing practices. The project is to assist Favorita in expanding its operations and improving operating efficiencies through: - expanding the company’s fertilizer storage capacity at its port terminal by 70,000 MT to 120,000 MT; - constructing a small, run-of-the-river 4.2 MW hydroelectric plant to be located on the Rio Bimbe in Los Rios province; - replacing and modernizing equipment and machinery throughout its business units; and - refinancing part of short and medium term debt maturing in 2007 and 2008. Finally, Favorita intends to merge its operations with its related holding group, Reyfarms Holding Corp. The project is estimated to cost $80 million. Favorita has requested IFC to consider providing an A Loan for up to $18 million, a C loan for up to $7 million and to syndicate up to $23 million under IFC B loan programme.