São Paulo, September 26, 2017—IFC,
a member of the World Bank Group, is lending $40 million to Companhia Brasileira
de Fertilizantes (Cibra), one of the leading distributors of high quality
fertilizer in Brazil.
IFC’s financing will help Cibra to
grow its business following best practices in sustainable agriculture,
also supporting the development of climate smart agriculture in Brazil.
Cibra's $ 80 million expansion plan, part financed by IFC and part with
its own resources, focuses on investments to improve the company’s
According to Santiago Franco, Cibra’s
CEO, "we are excited and proud to partner with IFC. Given IFC’s
high socio and environmental standards, this investment is actually a recognition
of the consistency of our expansion plan, our management capacity, and
our good environmental and social practices."
IFC’s Country Head in Brazil, Hector
Gomez Ang, stated that “the sustainable improvement of farm productivity
in Brazil, especially through the appropriate use of fertilizer, is essential
to help feed a growing world in a climate responsible way.”
The agricultural sector in Brazil struggles
with an intensive production system and poor quality top soil. This creates
the need for tailor-made fertilizer solutions based on farm-level soil
and crop needs. Cibra provides farmers and farmer cooperatives with straights
or precise blends of nitrogen, phosphorus, and potassium, as well as micro-nutrients,
based on soil analysis and specific crop needs. The appropriate use of
fertilizers, applying only what is needed where it is needed, reduces fertilizer
waste and increases farm productivity, helping to promote farming techniques
that contribute to a Climate-Smart Agriculture. This will bring environmental
benefits -including indirect greenhouse gases reductions- to the country.
IFC promotes inclusive economic development
in agribusiness by financing its complete value chain. In the fiscal year
ended June 2016, IFC invested globally $3.4 billion in the entire agribusiness
production chain to help increase production liquidity, improve logistics,
and expand access to credit for small farmers.
IFC has been investing in Brazil’s private
sector since 1956 to address the country’s most critical development challenges,
including those of the urbanization, social inclusion, competitiveness
and productivity, and management of natural resources.
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 FY17, we delivered a record $19.3
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 www.ifc.org
Cibra is the fifth largest fertilizer company
in Brazil, with a market share of around 4%. It operates eight production,
mixing and storage facilities in the country, with a productive capacity
of about 1.7 million tons of fertilizers. Between 2012 and 2016, Cibra
grew at an average of 55% per year, becoming one of the largest fertilizer
companies in Brazil. In that period, it increased sales volume from 200,000
to more than 1.3 million tons of fertilizer per year, with revenues reaching
$ 366 million in 2016. For more information, visit www.cibra.com