Pehart

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 IFC will fund from its own account a total of up to €90 million in the form of a sustainability-linked senior secured loan, and an unsecured loan to Pehart Tech Group SA, Pehart Tec Tissue SA and Samus Constructii SA (“Pehart” or the “Group”). Pehart is the leading tissue paper producer in Romania (website: https://pehartgrup.ro/en/). Pehart is owned by Abris Capital Partners via Abris CEE Mid Market Fund II LP fund (“Abris”), a well-established private equity fund focused on ESG transformation. After the buyout, Pehart will be owned by a consortium led by INVL Baltic Sea Growth Fund, the main private equity fund in the Baltics. Pehart produces different types of consumer tissue paper and operates two production sites in Romania.The Petresti site is situated in Sebes, within a mixed industrial-residential area. It spans an area of 11 hectares and comprises several operational and decommissioned buildings. The site operates two paper production machines and two paper converting lines, producing approximately 44,500 tons of tissue paper and 24,000 tons of paper products. Operations run continuously in four shifts, 24/7. The site's history as a paper production facility dates back to 1850, with gradual development leading to its current state since 1974. In 2016-2017, Abris acquired the site. Details regarding past environmental liabilities at Petresti are provided in the PS3 section of this document.The Dej site is in the industrial area of Dej, Cluj County. It spans an area of 8 hectares and has approximately 3 hectares of undeveloped land. The site was constructed between 2013 and 2015. The site operates two paper production machines and three paper converting lines, producing approximately 52,000 tons of tissue paper and 25,000 tons of paper products. Operations run continuously in four shifts, 24/7. IFC’s proposed investment will include (i) buyout of Pehart, (ii) capital expenditures to install new converting lines and improve energy efficiency, and (iii) refinancing of existing debt (jointly, the “Project”). The Project shall take place during 2024-2027.