The Project responds to the growing need for affordable and high-quality pharmaceuticals in LAC . This region faces substantial challenges affording and accessing the pharmaceuticals, and the needs are particularly acute in IDA countries which are often relatively under-served due to the small market size and regulatory barriers to entry for new generics. The need for an appropriate range of affordable medication will be accentuated as these countries often face substantial increases in non-communicable diseases, the ongoing burden from communicable diseases and the potential for infectious disease outbreaks. This project responds to this challenge by financing Luminova’s strategic plan which includes expansion in a number of markets including in CA, which will be facilitated by the acquisition of a manufacturing facility located in Spain. This will expedite exports to LAC as it is easier to register products given EMA approval. The Company will implement a technology transfer from Guatemala to the company in Spain, obtain the registries there (EMA), for some of the products use the production facility in Spain to complete the last part of the production process (filling, packaging, etc.) and then export from there to LAC. In this way, the acquisition in Spain will facilitate an increase in production from Guatemala and the entry of the company into new developing markets. The project will directly benefit patients through the increased production of medicines, and improved variety as new products are introduced to markets. This will strengthen their performance as Luminova’s entry can be expected to increase levels of competition which will lead to lower prices and more variety.

Financial Additionality Financing structure: IFC’s longer investment time horizon vis-à-vis other types of investors such as Private Equity funds and family offices will enable Luminova to properly execute its long-term plan. IFC’s mezzanine financing structure with a tenor of up to 7-8 years and a grace period of 5-6 years will best match the Project’s ramp-up period. Luminova also appreciates IFC’s flexibility to take intangible (brands) as collateral as well as fixed assets of the targets in France, Spain, and Peru, which local banks in the CA region cannot take. Non-Financial Additionality IFC’s global industry expertise and client network: Luminova values IFC’s expertise and network and would be keen to leverage this type of additionality best. IFC will provide Luminova with best practices and lessons learned from IFC’s global pharma portfolio. As the Group aims to continue expanding throughout LAC and Africa, IFC can help using IFC upstream capabilities, global network, and global presence and experience in cross-border projects including by sharing market insights and knowledge on potential partners; Standard-setting: IFC expects to bring international best practices in Corporate Governance (“CG”) based on IFC’s experience working with private companies in different markets. The IFC CG Specialists can help Luminova achieve a higher level of sophistication in CG which is critical for the business's long-term continuity and for achieving Luminova’s medium to long-term goals. IFC will also help the Group establish appropriate environmental, social and governance standards; Best practices on digital transformation to increase operational efficiencies: the Upstream team has presented DigiPharma to Luminova and they expressed interest in moving forward to support their efforts on digitalization to define strategic priorities in digital transformation to boost operational efficiencies in manufacturing, demand planning and generation, and streamlining processes.

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.