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| Project Name Pending |
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| Summary of Proposed Investment |
| 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. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26737 |
| Company name | Advance TerraFund |
| Country | Bulgaria |
| Sector | Agriculture and Forestry |
| Environmental category | FI |
| Department | Agribusiness |
| Status | Active |
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| Date SPI disclosed | April 22, 2008 |
| Projected board date | May 22, 2008 |
| Previous Events | Invested: August 25, 2008
Signed: June 24, 2008
Approved: June 19, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Note on Disclosure: pursuant to paragraph 9 (d) of IFC’s Policy on Disclosure of Information, the disclosure of the project company’s name and the amount of IFC’s investment are being delayed because of risk of impacting market conditions. After the disbursement of the proposed IFC investment (or earlier, when the information pending disclosure is no longer commercially sensitive), a revised SPI will be published containing all standard SPI information.
Project Description:
The proposed investment is to support the expansion of a company investing in agricultural land in Bulgaria promoting land consolidation. |
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| Project sponsor and major shareholders of project company |
| The company’s shareholding is well-diversified with a large proportion of individual investors and pension funds. The project is sponsored by a local group. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment involves providing an equity investment (in an amount pending disclosure) to help the company meet its expansion plans. |
| Location of project and description of site |
| The company in headquartered in Sofia and operates across Bulgaria. |
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| Anticipated development impact of the project |
| IFC’s investment will enable the company to achieve its expansion plans. It will support the expansion of an innovative asset class that will have significant benefits by providing a private sector solution to the urgent need for consolidation of agricultural land in Bulgaria and further support the development of the real estate and farming markets. Farmland consolidation is expected to create opportunities for investment and growth of efficient, modern farming companies, which, in turn are key to a competitive Bulgarian agriculture. |
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| IFC's expected development contribution |
| Without the IFC’s involvement, the company would most likely not be able to raise the amount of capital it is targeting, and it would need to delay its investment plans and the promotion of land consolidation in Bulgaria. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
IFC has analyzed the activities proposed to be supported by the company with IFC financing for types of transactions, size, tenor, and industry sectors, and has determined that the Applicable Requirements, would include a combination of:
- The IFC FI Exclusion List,
- The applicable National Social and Environmental Laws and regulations where the funding takes place, and
- The IFC Performance Standards.
From the appraisal, IFC is satisfied with the capacity of the company to identify and appropriately address social and environmental risks. The company will need to develop a formal Social & Environmental Management System (SEMS) appropriate to its needs.
Based on appraisal, the company will be required to:
- Upgrade and formalize, SEMS practices to the satisfaction of IFC,
- Commit to implement the SEMS, to ensure that investments are in compliance with the Applicable Requirements,
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis,
- Once the SEMS has been formalized, submit to IFC an example of a project (land purchase) that has been processed with the SEMS, and
- Submit an annually, a Social and Environmental Performance Report (SPER) to IFC as per a format to be provided by IFC.
Through the implementation of SEMS, the company will manage environmental and social risks associated with land rental and purchase. Should the company’s investment activities enter into new areas not reviewed during appraisal, IFC may require additional information from the company on these possible projects and possible modifications to the SEMS. |
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| For inquiries about the project, contact: |
| Company contact pending disclosure, please contact IFC in the meantime (contact details below). |
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| 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: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Vladimir Mihailovski
IFC c/o The World Bank
World Trade Center - Interpred
36 Dragan Tsankov Blvd.
Block A, 5th Floor
Sofia 1057, Bulgaria
Telephone: (359-2) 97 12 045
Fax: (359-2) 96 97 229 |
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