MCanuelas

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The proposed investment consists of up to $60 million of IFC’s own account and a B Loan of up to $95 million to Molino Cañuelas S.A.C.I.F.I.A. (“MolCa” or the “Company”). The IFC investment will support the construction of a facility to produce: (i) frozen precooked breads; (ii) frozen croissants & pastries; (iii) ready to eat precooked frozen pizzas; (iv) salty & sweet crackers; (v) Bread crumbs; (vi) muffins, donuts & brownies and (vii) round bread for hamburgers & others, which will further contribute to value addition. Additionally, the Company will conduct other maintenance, upgrade CAPEX at Molinos Cañuelas Plant, and acquire new operations in Argentina (the “Project”).Molca is the largest Argentine producer and exporter of wheat flour in the world and exports products to six continents. The Company mills approximately 30% of Argentina’s total flour production. Molca, founded in 1931, has a wheat processing capacity of 3 million tons per year. The Company exports reach more than 30 countries and represent about 28% of the Company’s total sales. Its largest export markets are Bolivia, Egypt, Brazil, India and Spain.The Company’s strategy is to continue to expand to more value-added products, such as pre-mixes, bread crumbs, cookies, pasta, and specialty oils in which the Company has already successfully developed some products and brands.As part of its corporate reorganization, MolCa acquired certain companies of the Navilli family: (i) CAGSA’s agro-services and soybean industrialization businesses, (ii) Cañuelas Pack packaging business, (iii) certain flour mills, food companies and agro-services companies domiciled in Argentina, Uruguay and Brazil. CAGSA’s business is the origination of grain through the sale of inputs and services to agricultural producers. Through its network of 96 offices located in five provinces in Argentina, the company directly reaches more than 8,000 producers. Today, the Company has a vertically integrated business model from ‘farmer to fork’.This is the second time since loan approval that IFC has reissued the Environmental and Social Review Summary (ESRS) and Environmental and Social Action Plan (ESAP) for this client due to a change in Molca’s operations. All original ESAP conditions disclosed in 2015, except for conditions 4 – 6 in the current action plan, have been closed and complied with. In June 2016, Molca acquired 7 Cargill plants in Argentina, nearly doubling the size of their manufacturing capacity. In May 2017, Molca merged with the origination business of the Navilli families group of companies. The new conditions in the action plan address gaps between management of origination activities and the relevant IFC Environmental and Social (E&S) Performance Standards (PS) discussed herein.