Piaggio

completed

The proposed investment includes support from Piaggio & C. S.p.A. (“Piaggio”, or the “Sponsor”), for its two separate projects in Vietnam and India. The project in Vietnam comprises establishment and start-up of operations of approximately 100,000 units per annum (p.a.) capacity two-wheeler manufacturing facility in Vinh Phuc, Vietnam, targeting domestic market and regional exports. The project is being implemented by PV, which was established in 2007. The facility in Vietnam is located in Vinh Phuc province industrial zone, 45 km north of Hanoi. Construction for this facility was completed December 2008 and production started in June 2009. The project in India includes establishment of a plant to manufacture compact and more fuel-efficient 1000cc and 1200cc diesel and turbo diesel engines for light commercial vehicles (“LCV”s) and two-wheelers, with an installed capacity of 150,000 engines p.a. The project is being implemented by PVPL as an expansion of its existing light commercial vehicles production facility in Baramati, 120 km from Pune, in the state of Maharashtra. Construction for this facility has been completed and commissioning of equipment is under progress. The proposed IFC investment consists of two separate loans to PV and PVPL (“the Companies”).