The project sponsor is Estácio Participações, a public company listed on Bovespa since 2007. GP Investments, a private equity fund, acquired 20% of the Company in 2008 and the founding family sold through a public offering, taken place in September 2010, their 42% stake in the Company. The current capital structure is: (i) GP Investments, the controlling shareholder with approximately 19% of the shares; (ii) Board Members and Management team with 4%; and (iii) 77% of free float trading at the Bovespa Novo Mercado.

The proposed IFC Investment will consist of two different loans: (i) an A-Loan of up to $70 million; and (ii) a B-loan of up to $80 million. The proceeds of the proposed IFC Investment will be used to finance the Project.

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

* These investment figures are indicative

Estácio is present in 17 states in Brazil through its network of campuses. The Company’s planned expansion will increase its reach in a number of cities across the country.

(i) Raise quality standards: Strengthening Estacio's position as a leading education company in Brazil will potentially serve as a catalyst for other leading education institutions to continue to raise the quality of their services; (ii) Improve access to services: Estacio's plans to expand its network, particularly in Southeast and frontier regions such as the Brazilian North and Northeast, will enhance the country's education infrastructure and improve access to quality, affordable education services for lower income students; (iii) Rationalize the market: Through its organic growth and planned acquisitions, Estacio will continue to rationalize the still fragmented education sector and increase efficiencies in acquired companies; and (iv) Expand reach of community service activities: Estacio's expansion in number of enrolled students and into new geographies will allow the Company to provide services to many additional people and a greater range of communities ( services may include legal advice, income tax filling advice, dental, medical and physiotherapy care, waste management and recycling studies and services at price below the market prices, by both students and faculty).

(i) IFC will provide longer term financing than available from the market; (ii) IFC's investment will help mobilize commercial banks which would provide longer term financing than otherwise available; (iii) Global knowledge: IFC will continue to support the enhancement of the Company's education services by sharing best practices and industry contacts; and (iv) IFC will lend credibility to the Company's management strategy, and also send a strong signal to support the education sector in Brazil and the viability of a business model targeting lower income students, especially in frontier regions of Brazil.

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 issues may have impacts which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environment, health and safety and social aspect of the project which were analyzed during IFC’s review were: Environmental and Social Management System (ESMS); life and fire safety of building infrastructure; labor and working conditions of employees and subcontractors; energy conservation of building infrastructure; hazardous and non-hazardous solid waste management; and possible land acquisition for expansion activities.