Fondo Agricola de Inversion Directa 2003

completed

Summary Of Project Information (SPI)Project NameArgentina-FAID 2003RegionLatin AmericaSectorProject No008123Projected Board DateMay 9, 1997Company NameFAID 2003Technical Partner and/or Major Shareholders FAID 2003 Sponsors are Cazenave & Associates (Cazenave), Aguirre y Gonzalez S.A. (AyG), Business & Banking Services S.A. (BBS) and Unimanager S.A (Unimanager).Cazenave is the leading agriculture service firm in Argentina, AyG is a local investment service firm, BBS is a business advisory firm and Unimanager is an asset management company.Project Cost Including proposed IFC investment The fund will be a US$ 20 million closed end agricultural direct investment fund (FAID 2003 or the Fund). It is proposed that IFC make an equity investment of US$ 5 million. IFC’s investment will be equal to a maximum of 25% of the Fund’s capitalization.      Location of project and Description of site The Fund will invest in direct agricultural production in diversified locations, principally in the Argentine Pampas. Description of Company and Purpose of Project The project involves the establishment of FAID 2003, a pluriannual direct investment fund to be organized in Argentina to invest in agricultural production. Initially, FAID 2003 will be a six-year, US$20 million, closed end fund. The funds raised will be used to lease agricultural land under short- and medium-term contracts and to plant on leased land a wide variety of crops over five agricultural campaigns. FAID will also make capital investments to enhance the productivity of the land and to reduce agricultural risk. Investments will include, inter alia, irrigation and drainage works. These will allow for substantial yield increases and for introduction of advanced production techniques.Environmental Category and Issues This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. FAID 2003 will be required to undertake an environmental review of each investment, which must comply with Government of Argentina environmental, health and safety laws, regulations and standards and be consistent with applicable World Bank policies and guidelines. In addition, IFC will assess FAID 2003''s capability to carry out environmental reviews. IFC must review and clear all Category A investments.          Date SPI sent to PIC      April 7, 2997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384