The project sponsor is ATGL. It was incorporated in England in 2010 as an intermediary holding company to own 100% of ATL, which was founded in 1998. Armajaro Holdings Limited (“AHL”) is the group holding company. The majority of AHL’s equity is owned by Mr. Anthony Ward (51%) and Mr. Richard Gower (44%). Both persons are co-founders and directors of AHL. The rest of the shares (5%) are owned by the staff and widow of the deceased former Chairman.

IFC is considering a corporate loan up to $30 million. The proposed investment will scale up ATL’s upcountry sourcing capabilities in the origin countries, improve its funding flexibility, strengthen its balance sheet and assist more farmers to achieve sustainable farming practices. In addition, the IFC African, Latin American and Caribbean Fund, managed by the IFC Asset Management Company, is also considering a $25 million corporate loan to ATL.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity	0.0

* These investment figures are indicative

The investment is a corporate facility supporting the company’s financing needs in its key commodity origins across Sub-Saharan Africa, Southeast Asia and Central America. The use of the funds is restricted to Part 2 country operations in IFC member countries.

The project''s development impact includes direct benefits to rural populations in many developing countries in Africa and Asia and a demonstration impact on sustainability and traceability initiatives. Some key impacts will be: 1) increased number of farmers reached/trained, 2) improved E&S practices in the traceable portion of the supply chain 3) improved farmers'' income through certification, training and improved access to market.

1) Linking Advisory Services (AS) with Investment: IFC would support the company''s initiatives to promote sustainable business practices which would ultimately benefit local cocoa producers
2) Demonstration Effect: Through partnership with an industry player which is ahead of its peers in the sustainability agenda, IFC will be promoting the E&S sustainability and traceability initiatives of Armajaro, which will have a demonstration effect for other commodity traders.
3) Catalytic Role: The proposed long-term corporate loan will allow Armajaro Trading to more flexibly fund its sourcing operations, extend its reach up-country, enable it to get closer to the farm-gate, further differentiate it from other traders and allow Armajaro Trading to increase trading volumes of traceable and certified cocoa and coffee from Africa (mainly Ivory Coast, Nigeria, Kenya, Tanzania, Uganda and Ghana) and Asia (mainly Vietnam and Indonesia) .

This is a category A project according to IFC’s Procedure for Environmental and Social Review due to the well documented significant adverse social (child labor) and environmental (conversion of habitat) supply chain risks associated with the production and trade of cocoa in West Africa and residual E&S risks.

In such category A investments, IFC will continue to monitor the implementation of Armajaro’s procurement policy, and how Armajaro is making use of its environmental and social management system to ensure the inclusion of E&S issues into its supply chain management to avoid and mitigate impacts, and monitor progress in establishing better E&S practices across its supply chain. The implementation of the agreed measures ultimately guarantees that the company’s operations are consistent with IFC Performance Standards and World Bank Group Environmental, Health and Safety General Guidelines (WBG General EHS Guidelines). Information about how the potential impacts will be addressed by Armajaro is summarized in the Environmental and Social Review Summary (ESRS) and in the Environmental and Social Action Plan (ESAP) agreed with the client.