Wilmar Holdings (Wilmar Group or the company) is one of the leading processors and merchandisers of quality edible oils in Asia with net sales in 2002 of approximately $3.5 billion. Its primary business activities include: - Refining crude palm oil and fractionating refined palm oil into other palm-based products; - Crushing oilseeds into meals, edible oils and their derivative products; - Refining soybean and other edible oils; - Merchandizing and distributing edible oils, oilseeds, oilseed meals and their derivative products; - Cultivating and harvesting oil palm trees and processing fresh palm fruit bunches into crude palm oil and palm kernel. Wilmar Group was established in 1991 to trade palm oil and palm products in Singapore and Indonesia. The business then expanded into processing and manufacturing of edible oils and derivative products in Indonesia and China. It also began investing and developing oil palm plantations in 1992. The group’s substantial shareholders include Mr. Kuok Khoon Hong, Mr. Martua Sitorus, Archer Daniels Midland Company (ADM), and China Cereals, Oils and Foodstuffs Import and Export Corporation (COFCO).

IFC would provide a partial guarantee for up to $33.3 million for a pre-shipment finance facility of up to $50 million extended by a commercial bank. This financing package will be in the form of a committed facility, renewable annually for a maximum of three years.

33.33 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	33.33
Loan
Equity

* These investment figures are indicative

Wilmar Trading is located in Singapore, and Wilmar Group’s major palm oil refineries and plantations are located respectively in Dumai, Palembang, Kuala Tanjung, Bitung and Sumatra of Indonesia.

This is a category C project according to IFC’s environmental and social review procedure. A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project.
Location of environmental documents in locally affected community

The project is intended to enable Wilmar Group to scale up its offtake of CPO from palm oil plantations in Indonesia. Not only will this facilitate an increase in exports in Indonesian Palm Oil, it will also have a positive effect on other players along the supply chain, such as farmers who will benefit from increased local demand by Wilmar Holdings refineries and access to international markets, as well as local businesses involved in services. Furthermore, IFC’s involvement in this transaction will be perceived as an endorsement of the Indonesian palm oil industry and will be a good illustration of IFC’s support for good sponsors in a socially sensitive sector.