The Project''s Sponsors are Mr. Mazhibayev and Mr. Koshkinbayev (the “Sponsors”), reputable Kazakh businessmen. Mr. Mazhibaev owns a 61.5% stake of the Company, Mr. Koshkinbaev owns a 35.5% stake and the remaining 3% is owned by the management of the Company.

The total Project cost is estimated at around $ 45 million. The proposed IFC investment is a $30 million A loan for IFC’s own account.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

Headquartered in Almaty, RG Brands has three operating facilities: Almaty, Almaty region (Aksengir) and one facility located in Kostanay, a city in northern Kazakhstan.

The Project will have following development impact:
(i) Creating and preserving direct and indirect jobs;
(ii) Supporting food security and availability;
(iii) Strengthening linkages with dairy farmers;
(iv) Increasing tax payments for the Government.

IFC expected role and additionality will include:

(i) Long-term partnership: RG Brands aims to grow internationally and values IFC as a long-term partner;
(ii) Advisory services: IFC will explore areas of the advisory support to the Company, particularly related to the energy efficiency and supply chain linkages;
(iii) Standard-setting in Environmental & Social issues: IFC''s expertise in Environmental & Social areas will provide additional value to the Company.

The nature of RG Brands’ operations includes manufacturing of UHT milk, soft drinks, juices, potato chips and tea bags for which there are effective mitigation measures for the potential E&S impacts. Based on site visits to the plants in Kazakhstan, a review of documentation and discussions with the plants’ management, this project will have limited environmental and social impacts and these are mainly site specific, largely preventable and/or reversible, and can be addressed through the implementation of specific mitigation measures. Thus the project is categorized as B according to the IFC’s Environmental and Social Review Procedure.



PS5: Land Acquisition and Involuntary Resettlement is not applicable as RG Brands’ premises in Kostanay and in and around Almaty are located in an industrial area, and has been in operation for many years; the premises around Almaty are located on a specially designated land, where there were no previous owners. The plant in Askengir was built on the land, which belongs to the company, and the area is capable to host the possible extension of production into UHT milk production and transfer of the current tea bags and potato chips production located respectively in Almaty and near Almaty. Since all facilities are in industrial areas, PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources are also not applicable. PS7: Indigenous Peoples does not apply as no impacts on such individuals or groups are expected, and PS8: Cultural Heritage is not expected to apply as there are no known cultural heritage sites associated with the existing premises.

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.