Sunshine

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  The proposed IFC investment is up to US$7 million A Loan to two subsidiaries of Sunshine Holdings PLC (“Group”). The use of proceeds shall be US$5 million to the Watawala Ceylon Tea Company for the acquisition of a Sri Lankan based confectionary manufacturing company (“Daintee”), and US$2 million for the expansion of roof top solar projects through Sunshine Energy and its subsidiary company Sky Solar.  Founded in 1967, Sunshine Group is a listed Sri Lankan conglomerate with a market capitalization of US$38 million. Its businesses cover (1) healthcare made up of pharmaceutical products/equipment’s distribution and retail (2) consumer made up of branded tea and confectionary, (3) agribusiness made up of plantations and dairy production; and, (4) renewable energy, comprising of mini hydro,  and roof top solar. Established in 1998, Watawala Tea Ceylon Ltd. is the largest branded tea company in Sri Lanka. It produces high quality Ceylon tea. Its products are sold to hotels, restaurants, cafes, boutique outlets, souvenir shops and e-commerce platforms. Its main operations involve acquisition of teas through auction, with outsourcing of manufacturing and packaging to Sunshine Tea (a related party to the Group), distribution, sales and marketing of the products.  Daintee established in 1984 operates two factories manufacturing sugar confectionery products for the Sri Lankan market, including Toffees, Jellies, Chocolates, Gum, Desserts, Biscuits, Snacks, Cereals, Teas, Peanuts and Wafer coated snacks. Established in 2012, Sunshine Energy has built a portfolio of three mini hydropower plants contributing 6.65MW of power to the national grid. In 2017, Sky Solar was incorporated and now manages roof top solar projects with a cumulative capacity of 1MW. Roof top solar development comprises of assessing roof structural suitability, installation of panels and invertors, and connection to the national grid (the later component completed by the national energy provider Ceylon Electricity Board). Sky Solar engages in revenue share arrangements with the roof owner, supports funding and project management with installation and operational maintenance (O&M) conducted by an Engineering Procurement and Construction (EPC) partner JSF Holdings PVT .