FV is privately owned by the Viegener family. Four brothers, descendants of the founder, control through holding Companies 70.7% of the shares of the Company. The balance is held by other members of the extended family.

FV will embark in an Investment Program of about $20 million for the next two to three years. The proposed IFC Investment will comprise a corporate financing of up to $10 million to support the Company’s strategic plan.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

FV is headquartered in an 8,000m2 facility in Florida, Buenos Aires, and has a production plant in a 60,000m2 site in Villa Rosa, Municipality of Pilar, Buenos Aires province.

- Expansion of Argentine Export Base: FV's ability to continue developing its export base is dependent on the required permanent working capital needs to sustain an adequate and diversified level of stock to supply different markets abroad. The wide portfolio of products require FV to allocate larger amount of resources in order to better attend each market it supplies and enhance its competitive position abroad. - Creation of Consumer Surplus: FV's cost optimization and energy efficiency improvements is expected to eventually translate into more competitive prices to end users, primarily within the construction sector. More competitive prices for building materials will benefit the housing sector.

- Long term financing: Although access to long term financing for larger Argentinean companies has improved in recent years, FV, like most second-tier Argentine companies, continues to face difficulties in sourcing long-term financing. Despite FV's strong balance sheet and profitability, the Company has no access to the long-term financing required to implement its investment program. Furthermore, IFC could provide local currency at a maturity that is not available in the local market, a key aspect for FV as it has a significant portion of its sales denominated in local currency; - South-south integration: IFC's market knowledge and local presence in Latin America, would further support the internationalization of the Company's operations, expanding FV's customer base and geographical reach to other emerging markets in the region. FV is in the process of becoming one of the leading metal fixture producers in the Southern cone (market leader in Argentina, Paraguay and Bolivia), but has recently entered the tough Chilean market and looks forward to strengthen its position in the Andean Region. - Cleaner production/energy efficiency: The team has been discussing with FV's management the possibility of additional guidance and assistance through IFC's Cleaner Production ("CP") program, which could be two fold: (i) first, through the coordination and partially funding audit to identify energy efficiency improvements in its existing operations, and low-cost reliable solutions; and (ii) second, by additional financing under the IFC's CP Loan Program, to implement such solution.

This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental and social issues reviewed during the appraisal include the following: management of its environmental, health and safety performance in the operation facilities; safe and healthy working conditions at the Company’s plant; labor issues in the Company’s operations; management of emissions to air and water arising from the operation of its facilities; use of energy, water and resources; relations with the nearby communities. FV Argentina has provided information on its current practices and policies that seek to address environmental and social risks and impacts to ensure that the proposed project complies with or, will upon implementation of measures agreed upon as part of IFC’s Investment documents, comply with host country laws and regulations and IFC''s Performance Standards (PS).

IFC’s review of this investment included a visit to the plant Argentina and meetings with key management personnel, including human resources, operational managers and support staff. A detailed description of IFC’s environmental and social due diligence of this investment can be found in the Environmental and Social Review Summary (ESRS), which is also available on IFC’s website at http://www.ifc.org/projects.