Sao Manoel is headquartered in the city of Sao Manuel, state of Sao Paulo, where the Company operates one mill, and where the investment will be directed.

- Stakeholders: The investment will contribute to creating skilled jobs and increasing female employment.

- Private Sector Development: The investment will support the continued expansion of a competitive domestic player in the sugar and ethanol industry, one of the most important sectors in the Brazilian economy.

- Payments to Government: The Brazilian agribusiness sector is highly competitive globally and is key to the economy in terms of its capacity to raise Government revenues. This investment will allow the Company to expand its operations and will contribute to the growth of the Brazilian economy.

- Climate Change: IFC's investment in Sao Manoel will contribute to climate change mitigation by promoting the use of renewable fuel in a country with expanding demand.

- Sustainability: The investment will contribute to disseminating the adoption of solid agricultural practices, as by promoting the use of innovative technologies São Manoel reports high productivity levels compared to the industry average.

IFC brings both financial and non-financial additionality to the proposed transaction. The financial additionality stems from provision of long-term financing and mobilization. Non-financial additionality is related to the adoption of IFC’s Environmental and Social (E&S) standards, and potential advisory support in case the Company decides to expand its co-generation facility in the future.

 This Project has been classified as Category B according to IFC’s Policy on Environmental and Social Sustainability. The Project’s principal E&S risks and impacts are associated with existing sugar, ethanol and energy production activities and sugar cane plantations. The E&S risks and impacts from this project are limited, site-specific, and can be readily addressed through generally accepted mitigation measures described in this document and the attached Environmental and Social Action Plan (ESAP). Key E&S issues associated with this project are: biodiversity loss and offset (requiring compliance with Brazilian Legal Reservation and Permanent Protected Areas requirements); wastewater (vinasse) treatment and discharge; air emissions from boilers; health (employees and communities) issues related to agrichemical exposure; OHS risk prevention and management; life and fire safety; neighboring and community engagement.