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Add to Preferred SourcesIFC, a member of the World Bank Group, is providing $55 million in long-term financing to Jalles Machado, a sugarcane processor and a biomass producer. This investment will help strengthen the country’s sugar and ethanol industry, and support its efforts to increase the share of renewable power in the energy matrix.
The sugar and ethanol industry plays an important role in Brazil’s economy, accounting for about 10% of its exports and over 1 million jobs.
IFC’s investment in Jalles Machado includes an eight-year $35 million loan from IFC’s own account, a seven-year $15 million loan mobilized from Rabobank, and a five-year $5 million loan mobilized from ABN Amro. The proceeds of the loan will help finance Jalles Machado’s investment program, which includes expanding the company’s sugarcane plantations and irrigation systems and finalizing the construction of a sugar processing plant at one of the company’s mills in Goianesia, State of Goiás.
“IFC partners with clients to make sustainability a business driver. Together, we are helping transform markets by defining principles of sustainable production for a variety of commodities and improving the standards for their production, processing and trading”, says Luiz Daniel de Campos, Principal Investment Officer, Agribusiness Department, IFC Brazil. “In addition to supporting the growth of the agribusiness and renewable energy sectors, IFC’s investment in Jalles Machado will also encourage the enhancement of the overall sustainability standards in the sugar and ethanol industry in the country”, he added.
IFC promotes inclusive economic development in agribusiness by financing its complete value chain. In the fiscal year ended in June 2017, IFC invested globally $1.2 billion in the entire agribusiness production chain to help increase production liquidity, improve logistics, and expand access to credit for small farmers. In that same fiscal year, IFC’s global portfolio in agribusiness totalled $3.8 billion. In the past six years, IFC invested and mobilized over $790 million in the agribusiness and food sectors in Brazil alone.
Original source: IFC
Published on 7 December 2017