Star Bright

pending

Star Bright Holdings Limited (“Star Bright” ) domiciled in Mauritius is the holding company for the Marginpar Group (“Marginpar” or the “Group”), which specializes in summer flowers production in East and Southern Africa under the “Marginpar” brand. The Group operates following 10 flower farms in Kenya and Ethiopia, with a production output of ~200 million stems a year that are exported to the Europe and Asian markets. Details of the farms, their areas, exact locations are available on the website (https://www.marginpar.com/about-us/farms): • Bondet Farm (Nanyuki, Kenya)• Kariki Juja Farm (Kiambu, Kenya)• Kariki Kudenga Farm (Molo, Kenya)• Kariki Naivasha Farm (Naivasha, Kenya)• MR Farm (Molo, Kenya) (acquired from Carzan Flowers, Kenya in 2018)• KS Farm (Nakuru, Kenya) (acquired from Carzan Flowers, Kenya in 2018)• ST Farm (Nakuru, Kenya) (acquired from Carzan Flowers, Kenya in 2018)• L’arca Farm, Ethiopia• Simba Farm, Ethiopia• Marginpar Ethiopia Farm, EthiopiaIn addition, the Group sources flowers from three partner farms in Tanzania and three partner farms in Zimbabwe. Across these farms, the group produces over 30 different crops with more than 100 flower varieties, on 450 hectares under production (including partner farms) and achieves a production output of approximately 300 million stems. The flowers are exported (transported in refrigerated containers and then air shipped) to the Netherlands, where the group handles sales, distribution, and market access through the Dutch Flower Auctions and supplies to a global client base. All the farms have similar operations and infrastructure including farmland divided in blocks under active production or rotation, packhouses, cold storage (as needed), propagation units (on certain farms), water lagoons, drip-irrigation systems, centralized fertigation units, chemical storage areas, pesticide mixing (or spray) rooms and pipelines for spraying, wetland based effluent treatment, worker facilities (change rooms, toilets, canteen) etc. Based on the variety of flowers and location of the farms, the production is either open or under hail nets or green houses. Many flowers also need extended daylight for which lighting is installed under the nets. The proposed investment is a senior loan of about €11.0 million (US$12.7 million) to Star Bright for its capital expenditure in its Kenya and Ethiopia farms and people and culture and IT developments. This would include:(a) expansion of packhouse capacity and upgrade of Gypsophila opening facility in the Naivasha farm, Kenya(b) installation of hail nets in both Kenyan and Ethiopian farms, (c) setting up of greenhouses, (d) 20 hectares expansion of the Nakuru farm in Kenya; and (e) setting up of a propagation facility. The loan will also support the Group’s environmental and sustainability initiatives such as setting up water recycling at the packhouses and installation of energy efficient lighting in the Nakuru farm, Kenya (together “the Project”). All sub-projects will be undertaken on existing footprint of the farms. No new land acquisition is expected due to the Project.