Agrofusion Group is wholly-owned by the Sypko family.

IFC will provide corporate financing to the Company in the form of an up to US$20 million A Loan for IFC’s own account.

16.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	16.0
Equity

* These investment figures are indicative

Agrofusion is headquartered in Mykolayiv, Ukraine. The Company conducts modern farming operations on 12,000 hectares of leased land in Mykolayiv and Kherson regions.

The proposed investment intended to support the Company''s current capital structure will: (i) help a leading Ukrainian tomato paste producer to scale up its export revenues and increase inflow of the foreign currency; (ii) support a viable economic activity and help secure employment in frontier rural area of Kherson region; and (iii) have a demonstration effect on other vegetable producers in Ukraine through promotion of sustainable agricultural practices.

Through a strategic engagement with the Company, IFC is well positioned to:
1. Support the Company''s capital base by providing longer tenors and stable working capital financing
2. Establish long term partnership with the Company with the ability to support further expansion
3. Share its global expertise in primary production and processing

This project will finance existing tomato crop growing, harvesting and processing operations. The key environmental and social issues for this project considered during the appraisal include:
- Company''s current quality, environmental, health and safety, and social management systems and their implementation and enforcement;
- Pesticide and fertilizer management systems, including protection of adjacent land and water courses;
- Food safety programs and certification (HACCP);
- Air emission control and waste/wastewater management;
- Water and energy use efficiency programs;
-Labor and working conditions, seasonal workers
- Occupational health and safety (OHS); and fire safety implementation.

The Project has limited potential adverse environmental and social impacts, and those that do exist are site-specific and can be resolved through the effective implementation of the action items in the attached E&S Action Plan (ESAP), which integrate IFC’s Performance Standards (PS) requirements and good international industry practices as defined in World Bank Group (WBG)’s general and applicable sector-specific (Annual Crop Production, Food and Beverage Processing) Environmental, Health and Safety requirements. This corporate-level investment is therefore a Category B project according to IFC’s Environmental and Social Review Procedures.

The information about how these potential impacts are and will be addressed is summarized in the following sections of this Environmental and Social Review Summary (ESRS) and in the attached ESAP agreed upon with the Company.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.