Pandurata Alimentos Ltda./Bauducco is a private family-owned company and was founded in 1952 by the Bauducco family. The shareholders of the Company are Pandurata Participações Ltda., that holds 99,99% of shares, and Bedece Comércio e Participações Ltda., with 0,01%, both holding companies maintained by Bauducco family. The Pandurata Participações Ltda. has, as shareholders, Mr. Luigi Bauducco, with 86% of the shares, his wife Mrs. Carla Bauducco with 10%, Mr. Massimo Bauducco with 2%, Mr. Carlo Andrea Bauducco with 1% and Silvana Bauducco with 1%. The Bedece Comércio e Participações Ltda. has, as shareholders, Mr. Luigi Bauducco, with 50% of the shares and his wife Mrs. Carla Bauducco with another 50%.

The Company started when Mr. Carlo Bauducco emigrated to Brazil from Italy in 1952. In 1972 Carlo Bauducco passed away and his only son Luigi Bauducco took control of the Company, expanding its product portfolio into toasts and chocolate cakes. In the mid ’80s, Massimo Bauducco, grand-son of Carlo, became CEO of the Company.

The total project cost is estimated at US$66 million, and IFC investment consists of a A Loan of up to US$40 million.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

Pandurata Alimentos/Bauducco headquarters are located in Guarulhos, state of Sao Paulo. The Company owns 5 modern production facilities, which places the Company among the most competitive players in the market. Three factories are located in the city of Guarulhos (state of São Paulo), one located in the city of Extrema (state of Minas Gerais) and one located in Rio Largo (State of Alagoas). The Company also owns distribution centers in Guarulhos and Extrema.

The project consists of (i) increase the capacity of the plant in Minas Gerais for the production of toasts and mini cakes, (ii) implement a new line in its Guarulhos plant, (iii) construct a new distribution center in Alagoas to increase sales to the Northeast regions.

The Project is expected to have the following key developmental impacts:

- Development of modern food processing and distribution industry. With its wide product range, various size packaging, and far-reaching distribution network, Bauducco is well positioned to meet the growing demand for high quality food products to a diverse range of customers across the entire country. The expansion with further strengthen the Company''s ability to do so.

- Growing operations in Brazil''s frontier regions. Bauducco is keen on steadily increasing its presence in the frontier regions where it distributes lower priced, smaller package food products through a variety of retail outlets. North East sales growth in 2015 was in the 25-30% range and rise in sales is expected to continue even if in moderate pace.

- Employment creation. The launch of new production lines is expected to create 228 new direct permanent jobs and about 400 temporary jobs (the latter during the construction phase), enabling rural, low skilled workers to transition from agriculture and informal employment service, to receive training, and to move up the social and economic ladder. About half of Bauducco''s employees are women and their share is expected to remain at this high level.

- Provision of training. The new employees have access to the Company''s extensive training programs: it operates an e-learning site and offers rotations between different plants to familiarize employees with other plants and processes. Many higher ranking positions are held by the employees that have advanced by taking in-house technical and leadership programs which are 30-50% subsidized by the company.

- Continued involvement in community development. The Company provides the following services: 250 meals per day are prepared for the needy children of the community; training of and employment for 30 people with mental disorders is provided as part of the working relationship with the local medical institution; 200 handicapped people are given job opportunities at various sites of the Company. Persons with disabilities are first offered technical courses with the associated NGO and are later employed at the plants.

IFC expected additionality stems from its ability to engage strategically with the Company by offering:

- Long-Term Financing: Provision of long-term financing that is not readily available through the local banking system on competitive terms. Tenor of the loan (8 years) and the grace period (3 years) are the differentiating factor and the main attraction for the Company.

- Female employment, training and community development: Support of a well-managed local company in difficult times which places an emphasis on female employment, people with disabilities employment and employee training, as well as plays an important role in the community.

- Environmental and Social Standards: (i) Rapid Environmental Impact Assessment: IFC agreed with the Company that it will conduct a review of all impacts and mitigation measures related to the Extrema plant extension project, including expansion of wastewater treatment plant at the plant''s site, and (ii) Implementation of all aspects related to ESAP, including setting monitoring procedures to inform the internal audit system and implementation of an integrated ESMS system based on international standards such as ISO 14000, OHSAS 18000 and SA 8000, which will consolidate nine separate management systems currently used by the Company.

- Energy efficiency: IFC is exploring possibilities to provide advisory support in the area of energy efficiency (capture of the ovens'' heat and re-circulation into the production process)

This Project has been categorized as B, due to the limited number of risks and impacts associated with Bauducco’s operations, which can be mitigated through accepted means of control in the bakery industry.

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.