The Companies are fully-owned subsidiaries and the main operating entities in Argentina of Adecoagro S.A. (“AdecoAgro ARG”), a leading agroindustrial company in the production of food and renewable energy in South America.

Adecoagro Group was founded in Argentina in 2002 by Argentine and Brazilian entrepreneurs who were sponsored by global institutional investors. Since 2011, its shares are publicly traded on the New York Stock Exchange under the symbol AGRO. Adecoagro Group currently employs over 8,000 people, mostly in Argentina and Brazil.

IFC investment will consist of a senior loan for up to US$75 million. A portion will be syndicated among parallel and/or B lenders. In addition, IFC will provide a concessional loan of up to US$3 million to support the installation of bio-digesters.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The Project is spread across a number of rural areas in Argentina, including provinces of Corrientes, Entre Rios, Santa Fe, Buenos Aires, La Pampa, Formosa and Santiago del Estero.

-Project will support growth and operations of a competitive agricultural producer on a global scale, supporting food security;
-Investment will make a significant contribution to local economic development and rural communities through job creation and linkages to small and medium-sized enterprises that supply services to the Companies;
-As the sector is a key sector in terms of tax revenue and hard currency generation for Argentina, the Project will further support tax revenues, therefore sustaining critical public investments; and
-Large-scale employment (more than 1,400 full-time employees to benefit).

i) IFC's engagement will provide long-term financing which is currently limited in the local market;
ii) IFC's umbrella will encourage mobilization of funding from other lenders; and
iii) The Project will benefit from IFC's support and monitoring of E&S best practices in agricultural production.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Farmers Reached	Farmers Reached (#)		Not Available	Not Available	Not Available
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Sustainable Management of living natural resources(%)	Sustainable Management of living natural resources(%)		Not Available	Not Available	Not Available
Stakeholder Engagement(%)	Stakeholder Engagement(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available

The project is an A category project as some of the farms are located in Critical Habitat. The Critical Habitat designation is triggered by the presence of significant concentrations of endangered, restricted range, migratory and congregatory species (mostly birds and some mammals). In addition, Critical Habitat is also triggered due to the presence of unique and highly threatened ecosystems in some of the farms. Several of AdecoAgro ARG’s farms are also within or nearby internationally recognized areas for biodiversity. These include, Important Bird Areas designated by BirdLife International and Key Biodiversity Areas, designated by Conservation International. Given the globally recognized value of these areas, the extent of past transformation and current agricultural activities, the impacts are potentially diverse and significant. Some project areas may overlap with unique and threatened vegetation communities thereby impacting other critical habitat areas.



The appraisal for this assessment confirmed that there are no impacts related to PS 5 – Land Acquisition and Involuntary Resettlement as AdecoAgro ARG’s transactions entail acquisition of existing, large scale farms involving neither physical nor economic displacement. There are no impacts related to PS 7 – Indigenous Peoples as none of the operations are located in areas that would impact communities of Indigenous Peoples and there are no impacts related to PS 8 – Cultural Heritage given the location of the existing farms. Although these performance standards are not applicable to current operations or planned expansions, the client is committed to apply them in the event they do become applicable in the future.



IFC’s appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the ESRS and in the agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with Performance Standards objectives.

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.