The proposed investment consists of up to $60 million on IFC’s own account and a B Loan of up to $95 million to Molino Cañuelas S.A.C.I.F.I.A. (“MolCa” or the “Company”). MolCa is an Argentine food processor officially founded in 1977 by the Navilli family. Its main business consists in the processing of wheat and sunflower to produce flour and oil.

The Company’s strategy is to continue to expand to more value-added products, such as pre-mixes, bread crumbs, cookies, pasta, and specialty oils in which the Company has already successfully developed some products and brands.

MolCa has recently embarked in a corporate reorganization, in which it acquired certain companies of the Navilli family: (i) CAGSA’s agro-services and soybean industrialization businesses, (ii) Cañuelas Pack packaging business, (iii) certain flour mills, food companies and agro-services companies domiciled in Argentina, Uruguay and Brazil. CAGSA’s business is the origination of grain through the sale of inputs and services to agricultural producers. Through its network of 96 offices located in five provinces in Argentina, the company directly reaches more than 8,000 producers. The IFC investment will support the construction of a facility to produce (i) frozen precooked breads; (ii) frozen croissants & pastries; (iii) ready to eat precooked frozen pizzas; (iv) salty & sweet crackers; (v) Bread scrums; (vi) muffins, donuts & brownies and (vii) round bread for hamburgers & others, which will further contribute to value addition. Additionally, the Company will construct a new flour mill, conduct other maintenance and upgrading CAPEX at Molinos Cañuelas Plant, and the acquisition of other flour mills in Argentina (the “Project”).

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