Paracel The proposed transaction consists of a senior secured A Loan to be provided to Paracel S.A. (“Paracel,”the “Company,” or the “Client”).Other international development finance institutions ("DFIs")are expected to participateunderpari-passu Co-Loans("Co-Loans").Total Project costs (including mill capex, forestry, and financing costs) are estimatedto beUS$3.6 billionand are expected to be financed with a combination of equity andlong-termdebt.Paracelis ajoint ventureestablished byCopetrol(Paraguay) andGirindusInvestments (Sweden), among other investors who have joined the Project afterwards.The Companyisdeveloping a greenfield kraft pulp mill and associatedeucalyptus plantations (the“Project”) in the Departments of Concepción and Amambay, Paraguay.Paracel expected production isup to1.8millionmetric tonsper yearof Bleached Eucalyptus Kraft Pulp (“BEKP”).Paracelwill bethe largest industrial development and the largest private investment in Paraguay’s history, as well as thefirstlarge-scalepulp mill.The Projectwilloutsourcethe development of the requiredexport outbound logistics(river and seaports).Paracel is expected to generateapproximately220MW of renewable energyofwhichabout100MW are expected to be sold to the national grid.The mill will be located on a 1,200hectare (ha)former cattle ranch 13kilometers (km)due north of and 18 km by existingroadsfrom the city of Concepción, on the left bank of the Paraguay river.The Paraguayriverwill be the water source for the mill and the receiving water body for treated effluents.A major Project component is the approximately 190,000 ha of former cattle ranch properties in the Departments of Concepción and Amambayownedand to bepartiallyconvertedto eucalyptus plantations(the resttobeconserved)bytheCompanyto supplywood tothe mill in future years.The millwill consume about sixmillion cubic meters of eucalyptus wood per year once operational1.Theareaof influence of theeucalyptusplantation propertiesincludesnineindigenous communitiesof thePaiTavyteráandMbyaguaraníethnic groups of the guarani linguistic family.In addition, the urban area of Concepción has a multi-ethnic indigenouscommunityin the area ofinfluence for both the mill and plantations thatisoccupied by mostlyspeakers of theMaskoylanguage family.TheProject will also constructancillary facilities:i)anew substationatthe mill site;andii)a 25-km transmission lineto connect the Project’s substation to the national grid.The Projectwill also include the following associated facilities:i)sixworker lodgingsin the city of Concepción,with a total capacity of8,000 people;ii) a riverine port facility forloading pulp onto bargesin Paraguay; andiii)an existing coastalshippingexport terminal in Uruguay.The Project is being designed using the best available technology. Itspre-constructionphaseinitiated in January 2021 andconstruction isexpected to last untilNovember2023, for a totalof 28months. Mill operation is estimated to initiateby the end of2023. The proposed transaction consists of a senior secured A Loan to be provided to Paracel S.A. (“Paracel,”the “Company,” or the “Client”).Other international development finance institutions ("DFIs")are expected to participateunderpari-passu Co-Loans("Co-Loans").Total Project costs (including mill capex, forestry, and financing costs) are estimatedto beUS$3.6 billionand are expected to be financed with a combination of equity andlong-termdebt.Paracelis ajoint ventureestablished byCopetrol(Paraguay) andGirindusInvestments (Sweden), among other investors who have joined the Project afterwards.The Companyisdeveloping a greenfield kraft pulp mill and associatedeucalyptus plantations (the“Project”) in the Departments of Concepción and Amambay, Paraguay.Paracel expected production isup to1.8millionmetric tonsper yearof Bleached Eucalyptus Kraft Pulp (“BEKP”).Paracelwill bethe largest industrial development and the largest private investment in Paraguay’s history, as well as thefirstlarge-scalepulp mill.The Projectwilloutsourcethe development of the requiredexport outbound logistics(river and seaports).Paracel is expected to generateapproximately220MW of renewable energyofwhichabout100MW are expected to be sold to the national grid.The mill will be located on a 1,200hectare (ha)former cattle ranch 13kilometers (km)due north of and 18 km by existingroadsfrom the city of Concepción, on the left bank of the Paraguay river.The Paraguayriverwill be the water source for the mill and the receiving water body for treated effluents.A major Project component is the approximately 190,000 ha of former cattle ranch properties in the Departments of Concepción and Amambayownedand to bepartiallyconvertedto eucalyptus plantations(the resttobeconserved)bytheCompanyto supplywood tothe mill in future years.The millwill consume about sixmillion cubic meters of eucalyptus wood per year once operational1.Theareaof influence of theeucalyptusplantation propertiesincludesnineindigenous communitiesof thePaiTavyteráandMbyaguaraníethnic groups of the guarani linguistic family.In addition, the urban area of Concepción has a multi-ethnic indigenouscommunityin the area ofinfluence for both the mill and plantations thatisoccupied by mostlyspeakers of theMaskoylanguage family.TheProject will also constructancillary facilities:i)anew substationatthe mill site;andii)a 25-km transmission lineto connect the Project’s substation to the national grid.The Projectwill also include the following associated facilities:i)sixworker lodgingsin the city of Concepción,with a total capacity of8,000 people;ii) a riverine port facility forloading pulp onto bargesin Paraguay; andiii)an existing coastalshippingexport terminal in Uruguay.The Project is being designed using the best available technology. Itspre-constructionphaseinitiated in January 2021 andconstruction isexpected to last untilNovember2023, for a totalof 28months. Mill operation is estimated to initiateby the end of2023.