The loan will allow the
company to step up the production of sanitizing products and boost liquidity
São Paulo, Brazil, October 9, 2020 –
IFC, a member of the World Bank Group, is providing a long-term loan of
up to US$ 27.5 million to Jalles Machado, a sugarcane processing company
and biomass producer based in the state of Goias. The loan will help Jalles
Machado address the economic impact of the COVID-19 pandemic, preserving
financial liquidity and jobs in the agribusiness sector, which is fundamental
to the Brazilian economy.
IFC's investment in Jalles Machado includes an up to US$ 20 million seven-year
loan from IFC's own account, and an up to US$ 7.5 million five-year loan
mobilized from Rabobank. The resources will ensure that Jalles Machado
continues to play an essential role in the response to the COVID-19 pandemic
in the state of Goias, increasing its production capacity for sanitizing
products and improving their packaging, ensuring the continued supply of
these essential products in the region to cope with the pandemic.
With this investment, IFC is supporting Jalles Machado in mitigating the
impacts the pandemic has had on fuel ethanol sales. IFC's financing will
help the company strengthen its working capital and liquidity, as well
as create a new business motivator during the temporary reduction of demand
for fuel ethanol. An IFC client since 2017, Jalles Machado has adopted
and implemented IFC's
Environmental and Social Performance Standards,
helping to raise the industry’s sustainability benchmark.
"Since the first loan, in 2017, IFC has been supporting us strongly
not only via investment financing, but especially in our pursuit of improvements
in the company's social and environmental sustainability standards. This
new loan seals our long-term partnership, which proves to be even more
important in times of economic uncertainty such as this," says Otavio
Lage de Siqueira Filho, CEO of Jalles Machado.
"IFC teams up with its clients to help Brazil cope with the negative
economic impacts of the pandemic," says Carlos Leiria Pinto, IFC
Brazil Country Manager. “Agribusiness is an important sector of the
Brazilian economy. In addition to supporting Jalles Machado's increase
in its production, IFC's investment will allow the company to play a key
role during the pandemic and will stimulate improvements in the sustainability
standards of the sugar and ethanol industry in the country," he adds.
IFC promotes the inclusive economic development of agribusiness by financing
its complete value chain. Over the past five fiscal years, IFC has invested
more than US$ 1 billion in Brazil’s agribusiness and forestry sector in
long-term investments, including US$ 479 million mobilized from other investors.
In the fiscal year 2020, IFC's new long-term investments in Brazil, across
all sectors, totaled US$ 2.2 billion, including US$ 615 million in third-party
resources. IFC has been investing in Brazil’s private sector since 1957
to address the country's most critical development challenges, including
those of urbanization, social inclusion, competitiveness and productivity,
and management of natural resources.
About Jalles Machado
Founded in 1981 in the Central-West of Brazil, Jalles Machado operates
two industrial plants with a combined annual milling capacity of 5.2 million
tons of sugarcane. It produces anhydrous, hydrous, and organic ethanol,
organic, white, and VHP sugar, sanitizing products, and dry yeast. It partners
with Albioma Participações do Brasil, exporting energy from the two units.
It is the largest producer of organic sugar in Brazil and the largest exporter
of organic sugar in Brazil. Jalles Machado differentiates itself in the
sector with a portfolio of high added value products - with an average
32% of revenue in the last two harvests coming from the sale of non-commodity
products - and verticalization, participating in soil preparation, planting
100% of its own sugarcane, harvesting, processing, storage, transportation
and sales under the Itajá brand.
IFC—a member of the World Bank Group—is the largest global development
institution focused on the private sector in emerging markets. We work
in more than 100 countries, using our capital, expertise, and influence
to create markets and opportunities in developing countries. In fiscal
year 2020, we invested $22 billion in private companies and financial institutions
in developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,