The proposed investment includes an IFC A Loan of up to EUR10 million to part-finance the investment plan of Subati Group (“Subati” or the “Company”) aimed at expanding and diversifying its high-quality rose exports. Subati is undertaking a three-year Project (2016-2018) of USD19.5 million in Kenya comprised of (i) upgrade of existing 80ha rose farms; (ii) development of 15ha new rose farm; and (iii) scale up of fresh herb farm to 40ha with a cold storage facility, water treatment plant, and solar panels. Subati, founded in 2007, is a family-run grower and exporter of roses with three production farms based in Kenya. The company grows ca. 120 different varieties of high-end “spray” and “single head roses” and fully supplies its production (c.60 million stems a year) to the direct market (wholesalers and florist chains; no supply to flower auction markets). This investment will enable the company to (i) consolidate its leading position in the high-end rose export market by increasing scale (c.100ha) and offering a wider product mix; and (ii) diversify its sales through additional high-margin business of fresh herb exports. The proposed investment includes an IFC A Loan of up to EUR10 million to part-finance the investment plan of Subati Group (“Subati” or the “Company”) aimed at expanding and diversifying its high-quality rose exports. Subati is undertaking a three-year Project (2016-2018) of USD19.5 million in Kenya comprised of (i) upgrade of existing 80ha rose farms; (ii) development of 15ha new rose farm; and (iii) scale up of fresh herb farm to 40ha with a cold storage facility, water treatment plant, and solar panels. Subati, founded in 2007, is a family-run grower and exporter of roses with three production farms based in Kenya. The company grows ca. 120 different varieties of high-end “spray” and “single head roses” and fully supplies its production (c.60 million stems a year) to the direct market (wholesalers and florist chains; no supply to flower auction markets). This investment will enable the company to (i) consolidate its leading position in the high-end rose export market by increasing scale (c.100ha) and offering a wider product mix; and (ii) diversify its sales through additional high-margin business of fresh herb exports. Horticulture is one of the top foreign exchange earners for Kenya generating c.USD1.0 billion annually. Over 500,000 people, including c.100,000 flower farm employees (60% of them women), depend on the floriculture industry, impacting c.2 million livelihoods in Kenya. The proposed project is consistent with IFC’s Agribusiness in Africa Special Initiative (AGASI) and the Agribusiness Strategic Plan (ASAP) as well as a good fit with IFC’s strategy in Kenya by (i) promoting inclusive economic development through a focus on the entire value chain supporting smallholder farmers, SMEs and women, (ii) making environmental and social sustainable practices as key business drivers, and (iii) creating jobs along the food value chain and expand domestic and export markets. In addition, the project has strong potential to improve productivity and E&S standards (including, for example, energy efficiency.) Finally, the project is aligned with the competitiveness and sustainability theme of the World Bank Group (WBG) Country Partnership Strategy (CPS) for Kenya for 2014-2018, as it supports the growth of a local company focused on exports. The company’s 4 main operations are as follows: (i) Subati Subukia, a brownfield former dairy farm, located 30km south of Lake Bogoria and 80km north of Lake Naivasha, with existing flower greenhouses, acquired in 2008, and now covering 100 ha with 46 ha of greenhouses currently in operation. A total of 55 ha under greenhouses is planned by 2018. The farm is supported by 1098 staff; (ii) Subati Naivasha, a brownfield existing flower farm acquired in 2012, covering 36 ha with 31 ha of greenhouses currently in operation. A total of 35 ha is planned by 2018 and the property is being expanded via purchase of neighboring properties as these become available. This farm is located about 10 km east of Lake Naivasha. The farm is supported by 646 staff; (iii) Subati Kibwezi, a greenfield property acquired in 2015. This property covers 323 ha. Approximately 280 ha of semi-arid degraded or modified woodlands, scrub and grasslands have been cleared in preparation for horticulture and associated infrastructure since December 2015, and no further clearing is planned. Greenhouses currently cover 20 ha with an additional 25 ha of uncovered experimental plots. Management plans to expand the total greenhouse area to 80-100 ha by 2020. Capacity for processing 40 ha of herbs is currently in place and infrastructure has been established to facilitate the additional 80-100 ha target. The farm is on the western bank of the Galana River which serves as the legal boundary with Tsavo East National Park and Key Biodiversity Area, which lies on the eastern bank. The farm is currently supported by 294 staff, with a final complement of 500 (end of year, and 1000 by next year) staff expected; and, (iv) trucking, of flower products from Subukia and Naivasha farms to Jomo Kenyatta International Airport, Nairobi (approximately 120 km) every night using a small fleet of trucks owned and operated by Subati.

Contact Person: Mr. Ravi Patel Company Name: Subati group Limited Address: 9th floor, Crescent Business Centre, Nairobi, Kenya Email: ravi@subatigroup.com Phone/Facsimile: +254 20 2048483 ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/