São Paulo, Brazil, February 25, 2015
- IFC, a member of the World Bank Group, is investing $80 million in
Usina Delta, a sugarcane and ethanol producer in Minas Gerais, Brazil,
to support its agricultural and industrial investment program and strengthen
its sustainability approach.
Delta’s investment program includes the expansion of its co-generation
electricity operations, which will increase its generating capacity by
approximately 250,000 MWh of electricity annually through renewable, bagasse-fueled
co-generation. Delta has been generating a surplus of about 180,000 MWh
per year, which it supplies to the electricity grid and neighbors. As a
result of this project, Delta will generate an annual surplus of about
430,000 MWh, enough to power a city of 235,000 people.
Brazil is the world’s largest sugar cane producer and exporter, and the
second largest ethanol producer. Sugar and ethanol production are crucial
for economic development and job creation in Brazil, employing 1.1 million
people and accounting for 11 percent of the country’s exports.
IFC’s long-term financing of 7 to 9 years includes a $40 million loan
and a $40 million syndicated loan with the participation of Rabobank and
the IFC Managed Co-Lending Portfolio Program, a new syndications platform
that offers institutional investors an opportunity to participate in IFC’s
future senior loan portfolio.
According to Mr. Robert Lyra, Delta´s shareholder, “Delta is pleased to
partner with IFC, not only for the loan that will result in a better capital
structure for the company, but also for the support provided by IFC
on strengthening Delta´s environmental, health and social policies, and
corporate governance standards”.
“This project is consistent with IFC’s agribusiness strategy in Brazil
of supporting food security and rural incomes by improving productivity
in agriculture, promoting inclusive growth, and strengthening environmental
and social practices. Usina Delta is a key player in the Cerrado region
in Minas Gerais, where the company plays an important role in social and
economic development,” said Luiz Daniel de Campos, Principal Investment
Officer, Agribusiness Department, IFC Brazil.
In addition to financing, IFC will help strengthen Usina Delta’s environmental,
social and corporate governance standards, to enhance the company’s ability
to identify business risks and opportunities.
IFC’s global investment in the agricultural sector supported the employment
of 421,500 people, including 124,000 women, and reached 3.1 million farmers
worldwide in 2013. IFC’s total agribusiness investment in fiscal year
2014 was $4 billion.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit