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         The proposed investment is to support Astarta (the Company), a leading primary agriculture producer in Ukraine, by providing a long-term corporate loan to finance the Companys 2017-2019 capital expansion program. This program aims at improving resource efficiency through the implementation of Best Available Technique standards at the Companys factories, and at developing the farming and trading of grains and oilseeds through the financing of farming equipment and storage.  
       
       
           
       
       
         Established in 1993, Astarta farms 246,600 hectares of land spread across Ukraine, operates nine processing plants and 200,000 tons of storage capacity and owns 30,000 cows. In 2016, it produced 910,000 tons of grains and oilseeds, 505,000 tons of sugar, 106,000 liters of milk and crushed 197,00 tons of soybeans into feed meal and oil. 
       
       
           
       
       
         The implementation of the Project will allow Astarta to reduce its waste, fresh water consumption, gas usage and CO2 emissions and provide for additional saving on costs of sugar production and storage. The most significant, expected project-level outcomes are the benefits to farmers and the positive environmental effects of the planned Best Available Techniques (BAT) investments. Beyond the project, IFC anticipates that the investment has the potential to promote market integration through improved competition and market enabling investments.

The project will have the following impact:

(i) Environmental and/or social benefits - IFC anticipates that, alongside improved operational efficiencies and lower costs of production, the project will have a significant positive effect on the environment. The BAT investment program financed by the project entails reductions in both water and energy use at Astarta's sugar plants. The project will also finance more modern and efficient machinery and equipment for the agriculture operations, enabling the Company to cultivate the land in a more sustainable manner. 

(ii) Benefits for the Consumers - IFC anticipates that, given the Company's focus on staple crops and its export orientation, the project will have a strong contribution on food security. IFC expects the increase in production of grains and oilseeds to translate into food availability for about 500,000 additional people. 

(iii) Benefits for the Farmers - IFC anticipates that the project will reach additional farmers through purchases of larger volumes of grains and oilseeds from third parties, investments in new storage capacities for third-party use, and new employment in agricultural operations at Astarta's own farms. IFC expects the construction of new storage facilities to address a significant infrastructure bottleneck for Ukraine's primary producers, enabling sales at more opportune times, expanding choices of who to sell to, and reducing port-harvest losses by up to 3,500 MT per year. IFC expects that these in turn will generate better incomes and more streamlined trading relationships.