Banco Galicia is owned by Grupo Financiero Galicia (CFG) that currently holds 94.72% of the total capital of the Bank, while most of the balance 5.28% is owned by two minority shareholders, Lagarcue S.A and Theseus S.A. GFG is a financial services holding company formed in 1999 to hold the capital stock of Banco Galicia held by members of the Escasany, Ayerza and Braun families. GFG is listed on the Buenos Aires Stock Exchange, the Córdoba Stock Exchange and NASDAQ Capital Market.

The proposed investment consists of a $40 million facility to be on-lent to Agricultural sector players in Argentina.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

Banco Galicia is headquartered in Buenos Aires, Argentina. The Bank operates one of the most extensive and diversified distribution networks among private sector banks in the country, offering more than 390 points of contact with customers through its branches and electronic banking facilities.

The anticipated development impacts of the Project are to: (i) improve access to medium/long-term finance for small farmers and agri-SMEs; (ii) support and promote energy efficiency and the use of limited resources in agribusiness; (iii) enhance the agribusiness sector efficiency and job creation in rural frontier regions by leveraging Banco Galicia's nationwide branch network.

IFC additionality arises as a consequence of the following factors: (i) provision of medium/long-term financing in terms and conditions otherwise not available in the market; (ii) support ot the growth of a key player in the local financial system and agribusiness sector; and, (iii) support to sustainable projects in energy efficiency, cleaner production, and renewable energy thereby supporting the enhancement of the environmental and social practices of the sector.

This project has been classified as a Category FI. Under existing projects, the client has implemented a Social and Environmental Management System (SEMS) to ensure compliance of sub-loans with the following applicable requirements: the IFC Exclusion List and the national social and environmental laws and regulations of Argentina. The client was also required to submit annual E&S reports to the IFC. During appraisal IFC will review the proposed investment portfolio and confirm the applicable requirements, which may be expanded to include the IFC Performance Standards. In addition, IFC will evaluate the bank''s labor standards according to the Performance Standard 2: Labor and Working Conditions. The client will be required to maintain or upgrade its SEMS, prior to disbursement and to the satisfaction of IFC, to ensure that its investments are in compliance with the Applicable Requirements; demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2; and submit a periodic report to IFC per a format to be provided by IFC.