Los Grobo Equity

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Grupo Los Grobo LLC (“GLG” or the “Group”) is an integrated and diversified agricultural services group operating in Argentina. GLG is controlled by the Grobocopatel family, which founded the company in 1984. The Group’s main operations include manufacture and distribution of crop protection products (“CPP), distribution of fertilizers, distribution of seeds and biotech market, grain production, grain trading and marketing, and flour milling GLG’s operations include Agrofina, an integrated off-patent crop protection company engaged in research and development (R&D), registration, manufacturing and distribution of crop protection products. The Group’s grain production (mostly soy, corn and wheat) is located in the region known as the “pampa humeda”, in the historic agricultural farmlands of Argentina. GLG evolved from a traditional model in which the agricultural producer owned all assets into a production model in which assets are owned by third parties and GLG provides services and inputs to them. During the 2015/16 season, the Group’s crops were produced on approximately 49,000 hectares (ha), of which approximately 28,000 ha were dedicated to soy, 8,000 ha to corn, 4,000 ha to wheat and 9,000 ha are used for other crops. Through its diversified services, GLG works in close collaboration with farmers and contractors to promote good industry practices such as precision farming and no/low-till agriculture, for which there is consensus of being favorable farming techniques for crop production in Argentina. IFC proposes an equity investment of $50 MM in GLG through a partnership with Victoria Capital Partners (“Victoria” and such proposed investment, the “Project”). IFC’s equity investment will support GLG to take advantage of the positive Argentine macroeconomic and agricultural industry situation and contribute to the company’s growth plan. The Project will be promoting food security as IFC will be investing in a world-class agribusiness servicer and key input producer and supplier, contributing to the cost-efficient production of a leading global grain and protein exporting country. As such, IFC would contribute to the provision of working capital needs to promote grain and protein production increase expected to occur in Argentina.