São Paulo, June 27, 2017 —IFC, a member
of the World Bank Group, is providing $90 million of long-term financing
to São Martinho, one of the largest sugarcane processors and biomass cogeneration
producers in Brazil. This investment will contribute to the growth of the
sugar and ethanol industry and help to further develop the renewable energy
production in the country.
IFC’s financing package to São Martinho includes an eight-year $60 million
loan from IFC’s own account and a five-year $30 million loan mobilized
from ABN-Amro. The proceeds of the loan will be used by São Martinho to
carry out its investment program in order to improve and maintain agricultural
and industrial efficiencies through the latest technologies and innovations,
as well as financing of its working capital needs.
“We are pleased this financing will start what we want to be long-term
partnership with IFC,” said Felipe Vicchiato, São Martinho’s Chief
Financial Officer. “IFC conducted a comprehensive due diligence process
at environmental, health, safety and social levels in the company. We believe
this is a testimony of São Martinho’s best practices in these areas and
will allow us to further diversify our funding sources with a competitive
“IFC works with our 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,” said Luiz Daniel de Campos,
Principal Investment Officer, Agribusiness Department, IFC Brazil.
“Our partnership with São Martinho will help promote the growth of the
agribusiness and renewable energy sectors, while also encouraging the enhancement
of the overall sustainability standards of 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 2016, IFC invested
globally $3.4 billion in the entire agribusiness production chain in order
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 totaled $4.9 billion. In the past five years, IFC invested
over $740 million in the agribusiness and food sectors in Brazil alone.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit
About São Martinho
Founded in the 1930’s by the Ometto family, Sao Martinho is currently
the fourth largest sugarcane processor in Brazil with 20 million tons of
cane crushed in 2016/2017 crop season. Sao Martinho currently operates
three sugar mills in the state of Sao Paulo and one mill in the state of
Goias with a total capacity to process 24 million tons of sugarcane annually.
Sao Martinho is listed in the São Paulo stock exchange under the Novo Mercado
segment, the segment with highest corporate governance standards.