The Company is part of the JK Organisation group of companies that is run by the Singhania family of India (the "Sponsors" or the "Promoter Group"). The Singhania family has a legacy of over 125 years and runs the well-respected JK Organisation which was established in 1888. The Promoter Group together own 54.99% of the Company, while the public own 45.01%

The total project cost is estimated at approximately US$100 million. The proposed IFC investment is in the form of secured non-convertible debentures (“NCDs”) of up to INR3.35 billion (US$50 million equivalent).

51.92 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	51.92
Equity

* These investment figures are indicative

JK Paper's headquarters are located at Nehru House, 4 Bahadur Shah Zafar Marg, New Delhi, 110002. The Project locations are at the Company's two plants: (i) JK Paper Mills, also called Unit JKPM and located at P.O. Jaykaypur, 765 017, Rayagada, Odisha, and (ii) Central Pulp Mills, also called Unit CPM and located at P.O. Central Pulp Mills, 394 660, Fort Songadh, District Tapi, Gujarat.

1. Strengthening Domestic Capacity: IFC's investment will help to consolidate and strengthen India's domestic capacity in the sector and enhance manufacturing capabilities, thus improving its competitiveness against imports. 2. Climate Change Mitigation: The Project will support the Company's efforts to make its plants more energy efficient by reducing the usage of water and coal. In addition, the Project supports a company that now plants more trees than it consumes, consequently helping to mitigate climate change and making JK Paper a net green company. The Project will thus help set the benchmarks in a sector where environmental footprint is a major issue. 3. Supporting Rural Incomes: The Company's strong farm forestry program that was bolstered by IFC's previous Advisory initiative completed in 2014 continues to enhance productivity, provide regular offtake, and hence improve the income stream of local farmers. The Company currently works directly with more than 20,000 farmers. IFC will explore possible re-engagement on the Advisory Services front in order to widen and further add to the impact already achieved through the earlier advisory project.

N/A.

1. Access To Long Term Finance: IFC has had a long relationship with JK Paper and has been a partner of the Company since we first invested in 2006. Securing IFC financing is critical for the Company in undertaking more long term strategic business investments and to grow market share. JK Paper is expected to benefit from the long tenor offered, grace period, and local currency funding, which is in line with the long gestation period and required currency of the proposed Project. 2. Technical Expertise and Sharing of Best Practices: JK Paper values IFC's global footprint, knowledge, network, and practical experiences in vetting and implementing projects, as reflected in IFC's ability to support pulp and paper projects worldwide. This is particularly relevant for the Company as it enters high growth specialty segments such as tissue paper and as it seeks opportunities to continue to expand its business internationally outside of India. 3. Continued Environmental and Social Standards Setting: IFC's investment in the Project will continue to reinforce the benefits of using sustainable best practices. The Company will also benefit from the implementation of the latest 2012 version of IFC's E&S Performance Standards, which contain updated criteria compared with the previous IFC Safeguard Policies that JK Paper was subject to in 2006 during the time of IFC's first investment in the Company.

The proposed corporate investment is in a company with operations existing at JKPM and CPM since 1962 and 1966 respectively. The key risks and issues relate primarily to: emissions to air, land and water; employee working conditions including occupational health and safety; community health and safety; supply chain management particularly in sourcing wood; and adequacy of systems in place to manage these risks and impacts. This is a Category B project as the risks and impacts associated with the existing operations are limited and can be readily addressed through mitigation measures by adhering to generally recognized performance standards, guidelines or design criteria.

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.