The company’s shareholding is well-diversified with a large proportion of individual investors and pension funds. The project is sponsored by a local group.

The proposed IFC investment involves providing an equity investment in an amount of up to EUR 15 million to help the company meet its expansion plans.

21.62 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	21.62

* These investment figures are indicative

The company is headquartered in Sofia and operates across Bulgaria.

IFC’s investment will enable the company to achieve its expansion plans. It will support the expansion of an innovative asset class that will have significant benefits by providing a private sector solution to the urgent need for consolidation of agricultural land in Bulgaria and further support the development of the real estate and farming markets. Farmland consolidation is expected to create opportunities for investment and growth of efficient, modern farming companies, which, in turn are key to a competitive Bulgarian agriculture.

IFC investment in the company helps ATERA in securing the capital needed to support its expansion plan and allows it to extend its reach and accelerate its land acquisition program, which in turn is expected to improve the economic value of agricultural land to local farmers.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

IFC has analyzed the activities proposed to be supported by the company with IFC financing for types of transactions, size, tenor, and industry sectors, and has determined that the Applicable Requirements, would include a combination of:

- The IFC FI Exclusion List,
- The applicable National Social and Environmental Laws and regulations where the funding takes place, and
- The IFC Performance Standards.

From the appraisal, IFC is satisfied with the capacity of the company to identify and appropriately address social and environmental risks. The company will need to develop a formal Social & Environmental Management System (SEMS) appropriate to its needs.

Based on appraisal, the company will be required to:

- Upgrade and formalize, SEMS practices to the satisfaction of IFC,
- Commit to implement the SEMS, to ensure that investments are in compliance with the Applicable Requirements,
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis,
- Once the SEMS has been formalized, submit to IFC an example of a project (land purchase) that has been processed with the SEMS, and
- Submit an annually, a Social and Environmental Performance Report (SPER) to IFC as per a format to be provided by IFC.

Through the implementation of SEMS, the company will manage environmental and social risks associated with land rental and purchase. Should the company’s investment activities enter into new areas not reviewed during appraisal, IFC may require additional information from the company on these possible projects and possible modifications to the SEMS.