WASHINGTON, D.C., Sept. 1 -- The International
Finance Corporation (IFC) has approved financing of US$60 million for SADIA
Conc█rdia S.A. Indstria e Com╚rcio, a Brazilian food company that is expanding
its production and distribution facilities. IFC will provide loans of US$40
million, of which US$10 million may be convertible into preferred shares.
Another US$10 million, and up to US$20 million, will be syndicated with
international banks. The SADIA Group is Brazil's largest processor of animal
and vegetable protein, including poultry, pork, beef, soybean, and margarine.
It ranks among the world's leading exporters of poultry products. SADIA
is undertaking a long-term investment program, at a total cost of $212
million, that will enable the company to maintain its leadership position
in animal protein production by upgrading its current facilities, improving
efficiency, increasing its distribution capabilities and continuing diversification
into value-added consumer products. Karl Voltaire, Director of IFC's
Agribusiness Department said: "By supporting a company like SADIA--a
pioneer in developing integrated systems of production, presently involving
more than 20,000 farmers--IFC hopes to make a strong developmental contribution
to Brazil. "IFC's mobilization of up to $20 million from international
banks and possible equity investment will assist SADIA in its future efforts
to tap the international capital markets while addressing the shortage
of long-term financing in Brazil," Mr. Voltaire added. IFC is the
private sector arm of the World Bank Group and the largest multilateral
source of financing for private sector projects in developing countries.