29036 - DBJC II

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Summary of Proposed Investment

Project Number

29036

Company Name

Detroit Investments

Date SPI Disclosed

Nov 25, 2009

Country

Belarus

Industry

Agribusiness and Forestry

Projected Board Date

Dec 31, 2009

Status

Completed

Sector

Soft Drink

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Jan 6, 2010
Signed : Jan 10, 2010
Invested : Feb 23, 2010

Project Description

Detroit Belarus Juice Company (DBJC) is a Cyprus based investment holding company, whose sole asset is a 100% shareholding in FE Staraya Krepost, the operating company that owns the juice plant in Bobruisk, Belarus. IFC is currently a 20% shareholder in DBJC by way of IFC’s $2 million equity investment, dated April 2008. DBJC is currently proposing a $6.37 million expansion project in order to: i) acquire equipment to launch contract production of soft drinks in PET format with a view to entering a new and much larger segment of the soft drinks market providing better value to consumers; ii) expand its warehouse capacity in order to accommodate a higher production and sales volume; and iii) invest in working capital to support growing sales. The project is proposed to be financed by way of conversion of shareholder loans into equity and fresh cash equity injection by IFC.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	1.33

Development Impact

Proposed Project is expected to bring the following development impacts: Employment: DBJC provides stable employment to 100+ staff, majority of which at the juice plant located in a low income region in Belarus. SMEs reached: DBJC has 90% market share in distribution, reaching a total of circa 5,600 sales outlets that are involved in the distribution of its beverages. Food Safety: DBJC is in the process of obtaining HACCP certification. DBJC will provide local consumers with competitively priced, high quality beverages that are a cost effective alternative to imports.

IFC is providing long-term capital to support the nascent private sector in Belarus and continuing to build long-term relationships with an existing client. IFC’s presence as a shareholder in DBJC provides comfort to foreign investors such as DI and to potential acquirers. By paving the way for the entry of foreign investors, IFC will catalyze Foreign Direct Investment (FDI) into Belarus.

This investment, where the original IFC investment was appraised and disclosed under the name of Detroit Investments (DI), is a Category B project according to IFC’s environmental and social review procedure. The current Environmental and Social Review Summary, which describes how the project has materialized during the implementation, and also gives the link back to the original, pre-construction project can be fund by using this link:

Contacts

For Inquiries About the Project, Contact

Nicholas Henderson-Stewart Barykovsky pereulok 3/1 119034, Moscow Tel: +7 (495) 580 9258 Fax: +7 (495) 580 9257 e-mail: nik@detroitinvest.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries IFC Corporate Relations 2121 Pennsylvania Avenue, NW Washington DC 20433 Telephone: 202-473-3800 Fax: 202-974-4384E Mail: Webmaster

Local Access of Project Documentation

The environmental documents will be made available in local language at the following locations: Factory entranceNakhimova str., 1Bobruisk, BelarusPhone: +375 (225) 47 41 14 Bobruisk State Library #8 named after E.PolotskayaMinskaya str., 90Bobruisk, BelarusPhone: +375 (225) 49 36 09

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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