The Project Sponsor is Ecom, a commodity trading company incorporated in Switzerland, with operations primarily in agricultural commodities such as coffee, cotton and cocoa and to a lesser extent grain and other agricultural products, and raising pork. Ecom operates as a fully integrated commodity originator, processor and merchandiser, providing primary processing, logistics and risk management services, and selling to branded product manufacturers covering the United States, Central and South America, Europe, Asia and Africa. Ecom was founded in Barcelona, Spain in 1849 by the Esteve Family, which still owns 94% of the Company with the balance held by the senior management. Ecom is a long-standing client of IFC, with one completed investment (fully repaid), and two ongoing investments. Ecom is also an Advisory client of IFC, with several ongoing initiatives and one successfully completed project.

The proposed IFC investment is a $50 million convertible C Loan for IFC’s own account.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The investment is a corporate facility, improving the Company’s current capital structure and supporting their financing needs across Latin America, Africa and Asia. The use of funds is restricted to Part 2 country operations in IFC member countries.

The project will create significant benefits to the communities where Ecom operates in terms of employment, business opportunities for small farmers and promotion of sustainable business practices. IFC quasi equity financing and the Advisory Services programs will, directly and indirectly, enable Ecom to expand its sustainability programs which will generate the following development impacts: - Improved E&S practices at the farm level and improved traceability and certification of cocoa and coffee; - Demonstration effect: other physical merchants attracted to Better Cotton Initiative; - Increased farmers' income through training, improved access to market and improved farm productivity. - Improved access to finance for farmers and ability to implement capex at the farm level with-multi-year payback periods where Ecom extends supplier advances

- Improvement of E&S practices: IFC will assist Ecom in development and implementation of integrated E&S management system and monitoring progress in establishing best E&S practices across its supply chain. - Long-term financing: Ecom finances itself along the trade maturities and long term funds are not readily available from the existing relationship banks. IFC’s long term sub-debt facility will enable Ecom to access more working capital capacity and expand its projects in high-risk IDA countries. - Long-term partnership: IFC is uniquely positioned to support its existing client through a combined product offering of financing and advisory services. The long-term subordinated debt facility will strengthen an existing relationship between IFC and Ecom and will lead to increased support for the sustainable farming in Latin America, Africa and Asia.

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 labour) and environmental (deforestation) supply chain risks associated with the production and trade of cocoa in West Africa and cotton in Central Asia and residual E&S risks.

In such category A investment, IFC will continue to monitor the implementation of Ecom’s procurement policy, and how Ecom is making use of its social and environmental 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 Ecom is summarized in the Environmental and Social Review Summary (ESRS) and in the Environmental and Social Action Plan (ESAP) agreed with the client.