GTSF PepsiCo Mexico

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The proposed IFC Global Trade Supplier Finance (“GTSF”) investment is a facility of up to US$75 million to the suppliers of Comercializadora PepsiCo Mexico S. de RL de CV and other Mexican subsidiaries of PepsiCo (“PepsiCo Mexico” or “the Company), a wholly owned subsidiary of PepsiCo, Inc. (“PepsiCo”), (the “Project”). Under the Project, IFC would purchase, at a discount, invoices owed by PepsiCo Mexico to its suppliers in Mexico and several emerging markets through participation requests from Citi. At invoice maturity, IFC would receive repayment of the full invoice value from PepsiCo Mexico via Citi's platform. The proposed facility will enable PepsiCo Mexico suppliers to avail of preferential supply-chain finance rates aligned to their demonstrated ability to meet targeted sustainability performance metrics.The financing rates paid by suppliers will be linked to their individual sustainability. The pricing offered to suppliers will depend on their progress in achieving several sustainability and decarbonization milestones providing an additional financial incentive for PepsiCo suppliers to continually improve performance in these critical areas. PepsiCo Mexico suppliers to be supported under this proposed facility are Mexico-based and supply, among other things, wheat, 100% RSPO certified palm oil, corn, cocoa, and dairy seasonings sourced from Mexico and internationally.