Press Releases

IFC SIGNS FINANCING AGREEMENT WITH PERDIGAO OF BRAZIL -- IFC's Second Recent Investment in Food Processing Industry --

Mauricio Perea
Phone: (202) 473-7997
Fax: (202) 676-0365

WASHINGTON, D.C., Oct. 30 -- The International Finance Corporation (IFC) has signed a US$50 million financing agreement with Perdigao S.A. Comercio e Industria, an integrated producer of pork and poultry products located in the state of Santa Catarina, Brazil. This is IFC's second investment in the Brazilian poultry and pork processing industry in fiscal 1996. IFC signed a US$23 million financing agreement with Chapecó Companhia Industrial de Alimentos, also of Santa Catarina, in July. Perdigao is undertaking a US$181 million investment program to expand its operations and improve their efficiency. The company will also improve health and safety standards to keep pace with the requirements of its major export markets in Europe and Asia. The project is expected to have a significant economic impact in Santa Catarina and Rio Grande do Sul, as the company will add an estimated 1,500 poultry and pork contract farmers to its supply network over the next few years. Most of these farms are small, family-owned busine
sses. "IFC is continuing to support the vertical integration between Brazilian pork and poultry processors and small farmers," according to Mr. Karl Voltaire, Director of IFC's Argibusiness Department. "This benefits the country by making an important export industry more competitive and by creating jobs in impoverished rural areas," he added. IFC is providing a US$35 million loan for its own account and is arranging a loan of up to US$15 million to be syndicated with international financial institutions. IFC is a member of the World Bank Group and is the leading multilateral source of equity and loan finance for private sector projects in developing countries.